Pisani-Ferry, Jean, (2016), “The New Fiscal Reality”, Project Syndicate, 1 November
“When the facts change, I change my mind. What do you do, sir?” This, reportedly, is how Keynes replied to the criticism that he had changed his position on the policy response to the Great Depression. Pragmatism of this sort is not that common: policy views are often characterized by considerable inertia. Too frequently, today’s perspectives remain shaped by yesterday’s facts.
Fiscal policy is a case in point. Facts have changed in two significant ways.
Relevant Posts
- Merler, Silvia, (2016), “Should we rethink fiscal policy?”, Bruegel, 24 October
- Fatás, Antonio, Summers, Lawrence, (2016), “Hysteresis and fiscal policy during the Global Crisis”, VoxEu, 12 October