The power of defunct economists

The concepts of economists have informed much of the debate around fiscal policy, but the crisis in the eurozone goes well beyond basic text book theories, says David Rowe

John Maynard Keynes famously said: “The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed, the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist.” The recent debate about fiscal policy bears witness to Keynes’ insight in a way he little imagined.

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