The Keynesian economic prescription can prove dangerous

Philip Booth appears on BBC2's Masters of Money

Philip Booth appeared on the first episode of a new BBC series, Masters of Money, discussing John Maynard Keynes.

He argued that in instances where economies have been knocked out of equilibirum it is usually due to government policy mistakes. Keynes didn't however, make a convincing case that government action to resolve these scenarios was preferable to allowing the economy to mend itself.

Philip also discussed the naivete of the Keyensian prescription of responding to recessions by raising the budget deficit as if it has no other adverse effect on other economic variables.

Watch here. Segments start at 5.43 and 35.17.