Is the European Union keynesiable? A sceptical view

The argument put forward in this chapter makes two unconventional points. The first point is that the European Union (EU) of today is not a ‘Keynesian-able’ entity, and that for much of its post-WWII history economic policies in the EU have not been properly Keynesian either. The second point is that the US ‘new economy’ of today, paradoxically as it may seem at first, is thoroughly ‘Keynesian’, namely through a peculiar financial mechanism nurtured by active economic policies. The argument is supported by a historical, political and economic narrative, which also takes into account the new role of Asia, especially of China.