Sunday, 5 July 2009
Hutton on Koo and Super-Keynesianism
Michael Taft: Writing in today's Observer, Will Hutton describes the prescriptions of Richard Koo, chief economist of Japan's Nomura Research Institute, to address the global economic and financial crisis. Simply put, Governments worldwide must engage in even more radical spending and borrowing programmes, to bring the international economy out of recession. While, obviously, this super-Keynesian model has its limitations in a small, open economy, it nonetheless provides an alternative perspective on the Government’s current deflationary policies.