How much does this change the overall picture? Can it help Greece get out of the crisis faster? The improvement in financing conditions for Greece and Greek banks is encouraging. However, the transition to smooth and regular access to capital markets will be a long one. The benign investor perception today is based on the assumption that reforms will continue.
The Keynesian emphasis on aggregate demand and its determinants is one of the basic innovations of the Keynesian revolution, and one that makes it far easier to understand and explain what factors are determining output and employment. Continuing down the list, on price and wage dynamics, the Phillips curve has flattened somewhat since the 1950s and 1960s.