Labour Market Forum 2010 - Planning Institute of Jamaica

The rise of new Keynesian thinking is surely expected in
circumstances where the economic crisis has led to a serious
contraction of the economy. It is argued that the requirement
for increased government spending is essential for building the
framework for strong economic growth. There is as well the
need for government intervention, as is now evident in the
banking sector, to correct market failures and ensure stability if
we are to avoid a double-dip recession.
The Australian economy is doing pretty well, credited as having
one of the most robust stimulus packages, and providing over
106,000 jobs in the July to September quarter, the highest
increase in four years.
In fact, Prime Minister Kevin Rudd is
reported to have said that the government’s infrastructure
spending on roads, rail and education far outweighs any
concerns about Australia slipping into a budget deficit. Bob
Herbert in a New York Times article said that the US
infrastructure must improve. “Ignoring these problems imperils
public safety, diminishes our economic competitiveness, is
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