http://blogs.independent.co.uk| Blogs from the Independent newspaper - news, views and features from the world's most free-thinking newspaper| Thu, 23 May 2013 13:07:44 +0000 http://wordpress.org/?v=2.9.2| en hourly 1 http://blogs.independent.co.uk/2012/06/26/keynesian-theory-and-public-borrowing/ http://blogs.independent.co.uk/2012/06/26/keynesian-theory-and-public-borrowing/#comments Tue, 26 Jun 2012 11:37:51 +0000 Ben Chu http://blogs.independent.co.uk/?p=25683 Keynesian theory says that over hasty deficit reduction can be counterproductive. This is because cuts and tax rises depress overall economic activity and thus tax receipts. Depressed activity also pushes up unemployment and results in a bigger benefits bill.]]> http://blogs.independent.co.uk/2012/06/26/keynesian-theory-and-public-borrowing/feed/ 6