Conservative Paper Admits Keynesian Economics Rescued France and Germany

Avatar:
Ben Cohen
Author:
Publish date:
Social count:
0

by Ben Cohen

Following through from my earlier post on Bill Emmet's assertion that neo liberal economies will prove the best able to cope with the recession, check out this article on France and Germany's recovery from the very conservative Telegraph:

Crass Keynesianism has done its job. A blast of fiscal stimulus and "cash-for-clunker"
schemes have lifted France and Germany from the depths of recession.

The twin motors of Europe each eked out 0.3pc growth in the second quarter,
much to the consternation of their own governments and the International
Monetary Fund. The eurozone as a whole shrank 0.1pc. Christine Lagarde, the
French finance minister, interrupted her holiday to announce that "France
was finally coming out of the red". Her country has been cushioned by
its big state sector and well-regulated banks.

Apologists for deregulation and debt based economies should take note. When papers like the Telegraph are rubbishing your theories, it might be time to have a rethink.