British economist John Maynard Keynes famously advocated the use of countercyclical fiscal policy to smooth the business cycle, writing in 1937: The boom, not the slump, is the right time for austerity at the treasury.” Since the election of President Trump in 2016, however, we may have been seeing a regime change in US fiscal policy…

A farewell to Keynes as the US abandons its countercyclical fiscal policy