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As we discussed in September, much of the response to the global economic crisis of the past two years was based, at least in part, on the economic theories of John Maynard Keynes. Broad based government intervention in the economy has been defended as essential to avoid a complete systemic collapse. However, as the economy emerges from this period of crisis, the views of F. A. Hayek have been cited by many who wish to see government intervention promptly reversed. Read this article for more details and a video.
Much of the response to the global economic crisis of the past two years has been based on the economic theories of John Maynard Keynes. No other economist of the past century has had such a profound influence on modern policy makers. The success or failure of the monetary and fiscal stimulus applied in the United States and elsewhere will depend on whether Keynesian policy prescriptions are effective.