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What happens now? Economics in an age when fiscal stimulus can’t be funded and no longer works. After Lehman fell, the scope of the financial crisis became so great that only the fiscal and monetary authorities possessed balance sheets large enough to resolve it. But if the U.S. is backing its financial system, who’s backing the U.S.? Practically, nations have reached “the Keynesian Endpoint”: No more balance sheets are left to support either economic activity or the financial system.
Since the 1930s, governments have overcome recessions by borrowing and spending to temporarily replace lost consumer and business spending. What happens when th
What happens now? Economics in an age when fiscal stimulus can’t be funded and no longer works. After Lehman fell, the scope of the financial crisis became so
Building upon foundational and groundbreaking economic theory, Alvarado offers a view of the world based on hard facts and reality, rather than the simplified v
During the 1970s, monetarism and the new classical macroeconomics ushered in an era of neoliberal economic policymaking. Keynesian economics was pushed aside. I