Working Paper No. 93, The Father, the Son, and the ‘Sulphuric’ Spirit: Reflections upon Gunnar Myrdal's Early Writings Dealing with J. M. Keynes, Plus the ‘Great Recession’

This inquiry explores Gunnar Myrdal's contributions to counter-cyclical fiscal policy, emphasizing his belief in accumulating surpluses during economic growth and deploying them during downturns. The first section discusses Myrdal's critique of traditional austerity measures, advocating for transparency in deficit spending and highlighting the psychological impact of fiscal policy. The second section compares Myrdal’s views with John Maynard Keynes’, noting their shared concerns regarding unemployment while emphasizing Myrdal's focus on social equity and institutional reform. The final section applies Myrdal’s framework to the U.S. response to the Great Recession, analyzing the limitations of the American Recovery and Reinvestment Act (ARRA) and advocating for more proactive fiscal measures.