Let me give another example. Many of you here must be aware of the ongoing debate on what is called as “Re-embracing Keynes.” The standard ‘return to Keynes’ argument is the need for fiscal stimulus to boost the economy from the depths of recession.
The burden of the deficit is not seen as the main drawback of government intervention, but a necessary measure to address a failure in aggregate demand. It is important to emphasize here that the theory was first presented by John Maynard Keynes in his book, The General Theory of Employment, Interest and Money, published in 1936, during the Great Depression.