Escaping from the Great Depression

Abstract

The 1930s: a decade of depression, but not of stagnation in economic policy. When Keynes was writing his General Theory, there were already several countries which had, since 1933, experimented with unorthodox policies, including fiscal expansion. So when we consider the practical achievements of Keynesianism, it seems appropriate to start by assessing some of the experiences of that decade. The theory may not have been well understood (though this would be unfair in the case of Sweden) but the policies were applied nevertheless.