After the financial crisis we were all Keynesians but not for long enough

The eurozone may be growing again but, in any meaningful sense, an economy in which most people's incomes are below their pre-2008 levels is still in recession

When the US investment bank Lehman Brothers collapsed in 2008, triggering the worst global financial crisis since the Great Depression, a broad consensus about what caused the crisis seemed to emerge.

A bloated and dysfunctional financial system had misallocated capital and, rather than managing risk, had actually created it. Financial deregulation together with easy money had contributed to excessive risk-taking. Monetary policy would be relatively ineffective in reviving the economy, even if still-easier money might prevent the financial system's total collapse. Thus, greater reliance on fiscal policy increased government spending would be necessary.