In it he goes through what has occurred in the Euro-zone and shows how Keynesian economics has been spot on with how it all worked out.
Here is a table from one of his links, another more aged article of his.
GDP losses due to Eurozone fiscal consolidation (including spillovers) 2011-13. Source European Economy Economic Papers 506, Table 5.
Impact on GDP 2013
|
Cumulative Impact 11-13
| |
Germany
|
3.9%
|
8.1%
|
France
|
4.8%
|
9.1%
|
Spain
|
5.4%
|
9.7%
|
Ireland
|
4.5%
|
8.4%
|
Greece
|
8.1%
|
18.0%
|
Incidentally this is the period when Good old Katesy said the Eurozone was engaged in Keynesian spending. This was because the Deficits grew! Our old Mate Sinclair Davidson said spending was the problem.
In actual fact the Eurozone was dong exactly what the Catallaxy clowns wanted. Getting into Austerity bigtime .And what did they get. A recession!
In Australia Wayne Swan brought down an austerity budget that cut spending in Nominal terms. What did we get? The lowest nominal GDP growth we have seen since our last recession.
Expansionary austerity was shown to be complete and utter cobblers by the IMF . This was published in 2011!
As Keynes said in 1936 Austerity only works when the economy is doing well. If it isn't then it merely makes things worse!
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