Victory or failure for the Keynesians in the euro zone?
We can consider that the Keynesians have gained a victory in the euro zone because major demand-stimulating policies have been implemented since the crisis: large fiscal deficit and sharp rise in the public debt ratio in the euro zone apart from Germany; monetary policy that eventually became very expansionary in 2014-2015, after a period when the ECB resisted, during which it refused to implement a massive stimulation of demand . But we can also consider that the Keynesians have failed in the euro zone. The reason is that the demand-stimulating policies have not improved the euro zone’s structural situation; potential growth has declined, structural unemployment has risen slightly, deindustrialisation has continued. The stimulation of demand has visibly not corrected these structural problems.