A Post-Keynesian Approach
New Directions in Modern Economics series
Edited by Claude Gnos and Louis-Philippe Rochon
: Keynes, Crisis and Macroeconomic Policy Claude Gnos and Louis-Philippe Rochon The financial crisis that has gripped the United States and the rest of the world has given all economists, especially those in North America, pause for reflection. What started as a crisis in the sub-prime mortgage sector has now spread, and has become an overall, generalized, worldwide economic crisis. And there is much to reflect on: what were the specific causes of this crisis, how severe was it, are we in danger of a second crisis, and how deep are the needed reforms and regulations? Of course, we also need to ask whether reforms are indeed the panacea that many believe that they are. We doubt that they will be sufficient to stem the possibility of a future crisis. Indeed, policy makers fail to understand that while reforms are certainly a welcome step, they do not address some of the more fundamental problems with how our market economies have evolved over the last 25 years. So while reforms are perhaps necessary, they are not sufficient. The causes of – and lessons from – this crisis will dominate the economic discourse for years and possibly decades to come. Indeed, our journals will publish countless articles on the crisis, in particular on its possible causes and triggers, not to mention articles on the merits and success of the stimulus package. Did we spend enough? Did we spend in key areas, and is there a need for a second round of stimulus spending? Articles will...