Kydland and Prescott on the demise of Keynesian macroeconomics

One thought on “Kydland and Prescott on the demise of Keynesian macroeconomics”

  1. you only use fiscal policy if there is a liquidity trap or as we know now monetary policy is impaired. Keynes made it plain in the GT monetary policy ‘king’ in normal times..
    ipsofacto keynesian economics was not used in the 60s and 70s. Indeed it seems people have forgotten that in good times you use austerity because that is the ONLY time it works

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