Lords Desai and Skideslky offer an interesting compromise.
Whether we accept Hayek\’s version of the cause of the recession or Keynes\’, we can still agree upon a solution:
Second, a recovery loan that will mop up money in banks, firms and households for which there is no present use – and use it for infrastructure projects: the high-speed rail link, road building and repairs, and house construction by local authorities; or projects to do with carbon emissions – insulating houses, and solar panels. A company could be set up to raise money for these projects that would not add to the deficit.
They seem to have forgotten another part of Hayek\’s thought. That the centre does not, cannot possibly, know what to spend the money on.
So, not all that convinced myself.