Spending While Liberalizing: Boosting Reforms Through Fiscal Stimulus

As a public policy think tank dedicated to studying issues that resonate internationally, France Stratégie publishes regularly in English on the labour market, the digital economy, sustainable development, economics and social affairs.In the depths of the Great Depression, John Maynard Keynes sparked a revolution with the idea that aggregate demand driven by households, businesses and governments all spending is what propels an economy forward. Contrary to the received wisdom at the time, he asserted that given free reign markets would not lead to full employment, especially during a downturn.