Jayati Ghosh warns against historically disastrous approaches to the sovereign-debt crisis hitting low- and middle-income countries.
In the 1920s and early 30s, John Maynard Keynes was embroiled in a controversy with the austerians of his time, who believed that balancing the government budget, even in a time of economic volatility and decline and financial fragility, was necessary to restore investor confidence and therefore provide stability. Keynes was horrified by the idea.
Zachary Carters brilliant biography notes that Keynes felt a package of government spendi…
Read the full article at: https://www.socialeurope.eu/how-not-to-deal-with-a-debt-crisis