Why Labour's Economic Views Should be Doing Better

Richard Posner, here via Andrew Sullivan:

The financial crash last September and the ensuing depression] have exposed significant analytical weaknesses in core beliefs of conservative economists concerning the business cycle and the macroeconomy generally. Friedmanite monetarism and the efficient-market theory of finance have taken some sharp hits, and there is renewed respect for the macroeconomic thought of John Maynard Kenyes, a conservatives' bête noire.