The study from the independent Institute of Fiscal Studies blamed Mr Brown for over-spending before 2007 for the severity of the recession faced by Britons.
Mr Brown\’s policies as Chancellor meant that Britain is now suffering from “one of the weakest fiscal positions\” among developed countries, the IFS said.
This was because Mr Brown had refused to match spending rises with tax increases after 2001, forcing the UK to borrow heavily up to and through the recession.
Keynes didn\’t just say that in the bad times you should widen the gap between spending and taxes collected to produce fiscal expansion. He also said that in the good times you should narrow said gap, to the point of it being positive, running a budget surplus, during the good times.
For two very good reasons: to reduce the debt that you ran up during the last recession of course but also to take some of the boom out of the economy. Fiscal contraction was, in Keynes\’ view, just as important as fiscal expansion at the right point in the economic cycle.
Given this that would make Nigel Lawson a proper Keynesian….for he did indeed run budget surpluses in the boom time.