Fiscal austerity does not on average reduce public debt ratios

Created
Mon, 13/11/2023 - 15:29
Updated
Mon, 13/11/2023 - 15:29
The resurgence of economic orthodoxy is a great example of how declining schools of thought can maintain dominance in the narrative for extended periods of time if the vested interests are powerful enough. In the case of the economics profession, mainstream New Keynesian theory persists because it serves the interests of capital. Recently, the IMF…