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In 2008 the world experienced an economic recession to which the UK and most parts of...

In 2008 the world experienced an economic recession to which the UK and most parts of western Europe have not yet fully recovered. This became known as the ‘Financial Crisis’. It is believed that the crisis originated with the subprime mortgage market in the US as households took on debt they could not sustain. In your view what would be a possible Keynesian response to this crisis? How different/similar is this to a response likely to be suggested by Hayek. Explain the reasoning for your answers[20 marks]

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Rahul Sunny answered 2 years ago
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