30 September 2013

George Osborne joins the ranks of Keynsians

George Osborne's speech at the Tory conference today has been widely reported as a call for continued austerity.

But what struck was the key passage - his call for the public finances to be in the black when the economy was strong as insurance against a rainy day.

Isn't that what Keynes argued - run a budget surplus in the good times and a deficit in the bad to even out demand?

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