Oh, That's What Keynesian Means?!

Bloomberg.com explains it for us: "Not so long ago, Sweden could claim world leadership in unmitigated Keynesian economics, with a 90 percent marginal tax rate and a welfare state second to none."

And here I thought Keynesianism had to do with boosting aggregate demand during a downturn!


  1. Ya that was pretty nuts... I was particularly surprised to see the author of the piece.

    Not exactly a hack journalist or anything. I'm not sure what he was thinking.

  2. You left out dampening aggregate demand during booms so that, among other things, the budget is structurally balanced across the business cycle. But yeah.

  3. Are you sure you construed the sentence correctly? If I say "I baked a delicious cake, with strawberries and chocolate chips", I don't mean strawberries are an essential component of cakes. Admitted, it seems a bit ambiguous as to whether this is a parenthetical clause or a description.

  4. I have a question regarding this conflation. Can anyone name a country that has a low tax rate, limited regulatory system and a small public sector, but isn't opposed to expansionary fiscal measures during deep recessions? I'll also accept economists, think tanks and political figures/parties that hold hybrid Keynesian/libertarian(ish) views.


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