What has Anne Pettifor been smoking?

And then there is the impact on our own living standards. For comparisons and precedent, we need only look at Japan. Our politicians and central bankers have not learned from Japan\’s crisis, which preceded our own. We are, therefore, destined to follow Japan\’s disastrous record of lost decades of economic activity. As in Japan, so here: a broken banking system, crushed by the weight of unpayable debts on its balance sheet, fails to lend to businesses at affordable rates.


Just as here, Japan\’s politicians and central bankers exaggerated the risks of inflation, reflecting the concerns of bankers and creditors – who fear inflation will erode the value of their outstanding loans.


Japan, with government debt at what is it, 220% of GDP, with every culvert and ditch in the country concreted over and most with their own bullet train station, shows that not being Keynesian doesn\’t work?


While Keynes is largely defined (by his enemies) as a fiscal activist, he was first and foremost a monetary economist. In other words, he believed that if governments and central bankers would only fix the money system – by lowering rates of interest for all borrowers (not just the banks); by injecting QE into productive, socially useful projects; and by restructuring the banking system – the rest of the economy could be helped to recover.

Bollocks: Keynes is famous for pointing out that the projects didn\’t have to be socially useful or productive. There just had to be projects.

3 thoughts on “What has Anne Pettifor been smoking?”

  1. It matters little what Keynes actually said. Part of his theory could have included the massacre of the first born, and they would still be wheeling him out today. He is just a figleaf for people who believe the State should always be enlarged. In good economic times how many Keynesians do you see then? How many people are calling for a smaller State and big budget surpluses? None of course, and they want to use the good times to spend the extra tax revenue on new State projects. Its only when the bad times roll around that his name is dragged up again, to justify continued high State spending and borrowing.

  2. What amazes me is that every time the financial system collapses in chaos due to artificially low interest rates and too much lending/borrowing, it is always declared that the problem is not enough lending and borrowing.

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