{"id":9987,"date":"2011-05-12T12:14:33","date_gmt":"2011-05-12T11:14:33","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=9987"},"modified":"2011-05-12T12:14:33","modified_gmt":"2011-05-12T11:14:33","slug":"its-keynes-or-bust-which-is-it-to-be","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2011\/05\/12\/its-keynes-or-bust-which-is-it-to-be\/","title":{"rendered":"It&#8217;s Keynes or bust. Which is it to be?"},"content":{"rendered":"<p>As the <a href=\"http:\/\/www.ft.com\/cms\/s\/0\/55780412-7a60-11e0-af64-00144feabdc0.html#ixzz1M8Rc9TgE\" target=\"_blank\">FT notes<\/a>:<\/p>\n<blockquote><p>Even as the ink is drying on Portugal\u2019s European Union and International Monetary Fund bail-out agreement, evidence is mounting that last year\u2019s bail-outs of Greece and Ireland have failed. Far from improving their access to the financial markets, Greece and Ireland face record borrowing costs. Notwithstanding the slightly less draconian terms of Portugal\u2019s agreement, it will surely suffer a similar fate.<\/p><\/blockquote>\n<p>No one can dispute any of that.<\/p>\n<p>After doing everything demanded of them these countries are failing. They have slashed budgets. \u00a0They have increased taxes. They have signed up to the most penal of bailout measures. \u00a0Everything that a neoclassical economists could demand of them has been done. \u00a0And yet there is absolutely no sign whatsoever that \u2018expansionary fiscal contraction\u2019 is occurring. \u00a0Far from it in fact: \u00a0their economies are being destroyed by the measures that are meant to save them.<\/p>\n<p>Only one thing can save Ireland, Portugal, Greece, Spain and other countries facing similar crises. That one thing is a Keynesian expansion. Only if these states are allowed to either borrow to invest, or better still, are given grants to achieve the same goal, will they be able to meet their past debt obligations. \u00a0And yet if they fail to meet those debt obligations we have another \u00a0massive banking crisis on our hands, \u00a0certainly as big as that which we saw in 2008.<\/p>\n<p>To be blunt, it's Keynes or bust. Which is it to be?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the FT notes: Even as the ink is drying on Portugal\u2019s European Union and International Monetary Fund bail-out agreement, evidence is mounting that last<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2011\/05\/12\/its-keynes-or-bust-which-is-it-to-be\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-9987","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/9987","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=9987"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/9987\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=9987"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=9987"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=9987"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}