Keynesian demand managment policy

Question

Why do new classical theorists consider keynesian demand management policy to be largely ineffectual? Does anyone know where i can get any information on this? or any helpful points.

Answer 1

Formally there is not incoherence between the aggregate demand polices suggested by new classical and Keynesian. New classical sustain that when in the economy the role of State it too high the power of more expense in public cost get reduced a lot and it only comes with inflation, down this moment new classical suggests to apply structural measures and procure to increase aggregate demand by stimulus to private consumption or private investment. New classical admits that when the role of State is low the power of public expense to move aggregate demand is high.

This was a discussion on top in '70 when Reagan and Thatcher economic measures did transform economic tradition in making policy. Those was a lot published and there was distortions in the analysis made in that decade because was a topic managed by non-specialists. Maybe you will find some articles a lot confusing and full of judgment of value criteria. I know the topics because it was full-talked by teachers when i was studding the career of economics.  

Answer 2

Personally I always thought it was b/s.

Though there is nothing wrong with big national projects that the private sector would otherwise never undertake.

Answer 3

I have no clue, but eco is hot! and the guy who answered above me's brain is hot ;)