We face a contemporary version of a ‘home market problem’ that stirred a debate on our thin consumption base decades ago
Economics is a discipline without a good sense of its own history. This is unfortunate because the past can often illuminate the present, especially in times of trouble. For example, it was only when the inadequacy of the dominant view became evident after 2008 that economists began to reach for the wisdom of older masters such as John Maynard Keynes, Michal Kalecki, Irving Fisher and Hyman Minsky. The selective amnesia is one reason why this column tends to wander off into history every now and then.