Economic Policy in a Recession. Lessons from the Past

Gerald Roy Steele

No 245275920, Working Papers from Lancaster University Management School, Economics Department

Abstract: When an economy drops suddenly into recession, the paramount objective of any policy initiative is to avoid deflation. To that end, quantitative easing has little to offer. Arguments from the 1930s are assessed within the context of the recent Global Financial Crisis, where the preceding twenty years of the Great Moderation had left economists high on hubris. In avoiding their deserved comeuppance, economists continue to parade an ever-more sophisticated intertwining of statistical data within mathematical relationships that is essentially divorced from social and political relevance. Though sorely needed, the broad strokes of a politico-historical perspective are rarely found within the purview of current mainstream economics.

Keywords: Central Banking; Deflation; Keynes; Simons Sovereign debt (search for similar items in EconPapers)
JEL-codes: B31 E58 H63 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-hpe, nep-mac and nep-pke
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