, Columnist
Why It's So Hard to Kill Keynesianism
Simple economic models that sound right often aren't, beginning with Keynesianism.
This article is for subscribers only.
We all know how stimulus works, right? The government spends money, and then the people who get that money spend it again, which increases gross domestic product and makes us all richer.
The interesting thing about this model is that economists abandoned it more than 30 years ago, as John Cochrane points out: