The G-20’s Dead Ideas

By Mark Blyth and Neil K. Shenai – There was a cost to this Keynesian victory, however. Government finances suffered, with fiscal deficits soaring across Europe and North America.

The global financial crisis has thus taken an ironic turn. The same large multinational financial firms that sought government bailouts are now shocked and surprised by the spending of “profligate” governments. Indeed, these actors are now speculating against the very governments who brought them back to life by shorting their debt. As a consequence, governments across Europe are adopting austerity measures to outflank the positions of these speculators. more>

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