The irony, of course, is that Keynesian economics, which had dominated macroeconomic thinking since the war, was already dying.
FOR most of the post-war period, macroeconomic stabilisation policy was an endogenous driver of stocks.
Joseph E. Stiglitz, the Nobel Prize-winning economist and former economic adviser to President Bill Clinton, projected in a 2006 paper (PDF) with another economist, Linda Bilmes, that the total macroeconomic costs of the Iraq war itself would surpass $2 trillion.
Third, the drug war coincided with macroeconomic events that reduced the incentives to move abroad, particularly to the USA.
By 1985 or so, the "scientific consensus" had shifted, in part because policies based on that consensus were tried in the 1970's, leading to the worst macroeconomic performance of the post-war period.
That would push jobless rates into double digits in much of the rich world and leave many countries perilously close to deflation.Faced with this cataclysm, policymakers have been fighting back with the biggest and most synchronised macroeconomic stimulus since the second world war.
Despite the end of the civil war and a rapid macroeconomic growth, the country has a high rate of poverty and social inequality [ 1].
The organization for which I work, the Institute for Economics and Peace, released a new report this week detailing the macroeconomic effects of U.S. government spending on wars and the military since World War II.
Still, one worries, because the standard economic models are notoriously bad at capturing the macroeconomic effects of uncertainty, which trade wars create with a vengeance.
The war was, first, a massive macroeconomic stimulus.
