The credit crunch was caused by Keynesians? Sigh. To paraphrase a movie, "The greatest trick Milton Friedman ever pulled was convincing the world he didn't exist".
The credit crunch was caused by the collapse of a property bubble caused by the dropping of interest rates to prop up the economy after the dotcom bubble. The initial bubble was caused by people being fucking idiots and buying shares in things they knew nothing about. I don't think anyone comes out of the last 15 years very well :->
The fact that a Keynesian said "property bubble" in 2002 doesn't make it Keynes-fail. And it depends what you mean by property bubble: if you're taking about the one in the USA then it's really a lack of regulation that caused the more severe aspects of the crash. Lack of regulation != typical Keynesianism.
I read a Paul Krugman book once. He's the Michael Moore of economics: I agree with everything he says, but I still think he's still a gobby idiot.
I should point out at this point that my knowledge of Keynsianism isn't anywhere near good enough to discuss this at a reasonable level, and that I don't have time to go and skim the Wikipedia article, as I'm off to the cinema. I shall thus accept your judgement.
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I read a Paul Krugman book once. He's the Michael Moore of economics: I agree with everything he says, but I still think he's still a gobby idiot.
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For now, you win!
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