The Dissolution of the Keynesian Consensus

Dean, James W. "The Dissolution of the Keynesian Consensus." Public Interest. Special Issue (1980), pp. 19-34.


On December 13, 1979, the government of Canada fell. For just six months the Conservatives had governed with a parliamentary minority, and they were defeated on a vote of no confidence. The issue was their first budget – a budget that rejected Keynesian economic policies, replacing them with radically different recommendations. Unemployment and slow growth were to be fought not by increasing the federal deficit but by reducing it.

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