Emeritus Prof Christopher May on Nostr: Keynes was alway counter-cyclical in his recommendations for Govt. action - so where ...

Keynes was alway counter-cyclical in his recommendations for Govt. action - so where markets were falling (and negative impact spreading) his repose would be to raise public spending to strike 'effective demand'... the bit that is often forgotten is that when markets are booming, Keynes would (counter-cyclically) be arguing for Govt. to raise taxes to take money out of a potentially overheating economy - the Govt. as thermostat, in a sense