The Eclipse of the Austerians


2011_03_260097d (Photo credit: Gwydion M. Williams)

For me, last week was very exciting because there were clear signals of the eclipse of the austerians, those supporting austerity and the Austrian School of Economics.

Gavyn Davies‘ authoritative blog in the Financial Times today has confirmed that once again Keynesian solutions are being proposed to policy-makers. Last week the Chief Economist of the IMF (widely cited as having Keynesian leanings) proposed that the US, the UK and Germany slacken off on austerity to give growth a chance.

I fear that not much will happen in Germany until after the election but it’s just possible that the UK will change direction, as there is enormous pressure on  UK Chancellor, George Osborne

Shedding a few tears at Margaret Thatcher’s funeral,  George Osborne has continued to surprise the public; perhaps he will perform a U-turn and become a Keynesian, after all he’s very shrewd, and likes to be ahead of the curve?

Sadly, since 2008, the UK economy has been severely damaged and even with a good old fashioned dose of Keynesian medicine, the patient might struggle to regain strength.

Perhaps, somebody should have a word in George’s ear that there is a lot of talent on the bench in the form of independent executives and consultants? Open this link for some of my earlier views on interim management.

Once the the austerians are put to bed, it might just be an opportunity for executive interim managers to help fast-track the recovery?

What do you think? Do you agree? Do you disaagree?

All views are welcome!

Enhanced by Zemanta | George Osborne prepares for battle with the IMF

English: George Osborne MP, pictured speaking ...

English: George Osborne MP, pictured speaking on the launch of the Conservative Party manifesto for the 2009 European Parliament elections, at Keele University. (805×1207 px, 283,711 bytes) (Photo credit: Wikipedia)

One of a number of posters created by the Econ...

One of a number of posters created by the Economic Cooperation Administration to promote the Marshall Plan in Europe (Photo credit: Wikipedia)

United Kingdom

United Kingdom (Photo credit: stumayhew)

This is an excellent article from Larry Elliot in the Guardian and well worth a read. Check it out! | George Osborne prepares for battle with the IMF.

For me, the time for heavy Keynesian intervention in Europe is way overdue both in stimulating investment in the UK and in transfers from North Europe to Southern Europe; a modern Marshall plan is needed now. Thank goodness there are a few prominent supporters of Keynes at the IMF.

What do you think?

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