How the Government Dealt With Past Recessions
Since the Great Depression, presidents have frequently experimented with Keynesian economics to combat recessions. Three economists chronicle the history of government policy during past recessions and explain what worked and what didn’t.
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John Olerud - 2/2/2009
New Deal or Raw Deal is an excellent new volume that points out Keynesian economic policy deepened and prolonged our Great Depression. Milton Friedman proved that faulty fiscal policy turned a garden variety recession into the Great Depression. When will erroneous history give way to the reality that monetary policy is the answer, and that Keynesian style government deficit spending crowds out more efficient private sector investment that ended recessions in 1921, 1907, 1893, and 1873.