Post Crisis Policy: Some Reflections Of A Keynesian Economist
This paper compares the depth and length of the recent crisis with the Great Depression in the nineteen thirties. It claims that economic policy played a crucial role in shortening and curtailing the recent crisis. The authors analyze which policies were applied during the Recent Crisis and which measures worked. They know that policies relying on large infrastructure projects inherently involve an implementation lag. These lags have been very high in the Recent Crisis and some expenditure planned will maybe never be spent. They therefore suggest implementing a leakage rate for government expenditure programs which represents the part of intended public expenditures not spent in the first twelve months after the program is set into action.