Are We 'All Keynesians Now' - Again?

Article no: EN20080131-Article-1.3-2007

Are We 'All Keynesians Now' - Again?

It was 1971 when Richard Nixon, a conservative, uttered the famous phrase "We are all Keynesians now?. But there was a backlash soon to follow, with Ronald Reagan and Margaret Thatcher changing the world as perhaps no two other people did in the 20th century. Ronald Reagan's "supply-side economics" was never taken seriously in the economics profession ? even at the height of his influence there was barely a handful of economists that would lend their names to it. But the economics profession did, in its research at least, throw out many of the insights that had made John Maynard Keynes the most influential economist of the century. By Mark Weisbrot