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Scott Sumner Declares Keynesianism Dead

[Snark on] Bad news Keynesians – you’ve been declared dead by Scott Sumner.  And that means counter-cyclical policy of any type doesn’t work.  Yes, it’s true.   Just look at the evidence:

  • Adding trillions of dollars of net worth during a de-leveraging via the direct issuance of net financial assets via deficit spending, does not help private sector balance sheets despite the very basic accounting that proves otherwise.
  • The Troubled Asset Relief Program, which helped our financial system avoid widespread calamity, did not work even though our financial system is far more stable than it was in 2008.

Sorry Keynesians.  Time to take your ball and go home, losers.  [Snark off]

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