Publication Date
3-19-2025
Document Type
Working Paper
Advisor
Professor John Hall
Journal of Economic Literature Classification Codes
B31, E62, N22
Key Words
Countercyclical fiscal policy, the Great Recession, Keynes, Myrdal
Abstract
This inquiry explores Gunnar Myrdal's contributions to counter-cyclical fiscal policy, emphasizing his belief in accumulating surpluses during economic growth and deploying them during downturns. The first section discusses Myrdal's critique of traditional austerity measures, advocating for transparency in deficit spending and highlighting the psychological impact of fiscal policy. The second section compares Myrdal’s views with John Maynard Keynes’, noting their shared concerns regarding unemployment while emphasizing Myrdal's focus on social equity and institutional reform. The final section applies Myrdal’s framework to the U.S. response to the Great Recession, analyzing the limitations of the American Recovery and Reinvestment Act (ARRA) and advocating for more proactive fiscal measures.
Rights
Copyright 2025 by Niccolo Cellini
This work is licensed under Creative Commons Attribution-NonCommercial 4.0 International
Persistent Identifier
https://archives.pdx.edu/ds/psu/43589
Citation Details
Cellini, Niccolo. “The Father, the Son, and the ‘Sulphuric’ Spirit: Reflections upon Gunnar Myrdal's Early Writings Dealing with J. M. Keynes, Plus the ‘Great Recession’, Working Paper No. 93 ”, Portland State University Economics Working Papers. 19 March 2025; i+22 pages