Turn out the lights, the party's over
In my younger days, I tried to publish a paper entitled "How Dead is the Solow Model?"
Let me reproduce in full the abstract to that paper below:
Needless to say, I got nowhere, and it wasn't until Mrs. Angus came on board that a much revised, improved and toned down version got published in the Journal of Development Economics.
Undaunted, I rise this lovely morning to proclaim that Keynesian economics, despite recent wide spread reports of its revival, is indeed, "Stone dead".
People, we have seen a literal mountain of government spending around the globe. And what do we have to show for it? An avalanche of unsustainable deficits and sovereign debt levels.
In the long run, it is true that we are all dead. But meanwhile, until that blessed day arrives, we are all broke!
The smartest thing many countries could do right now is the old double D; Default and Devalue. However, the likely result will be a "lost decade" of immiserizing policies undertaken at the behest of Keynes' most horrible creation, the IMF.