Did “Keynesian Economic Theory” fail in the post-crisis years of 2008?

The ‘Great Recession’ of 2008 was brought about by reckless lending. The aftermath left the credit market in an extreme tight squeeze whereby corporations were frightened and hesitant to spend. Cost cutting led to massive layoffs leaving people with no money, therefore, ‘aggregate demand’ dropped!  Economists, led by the then FED Chairman Ben Bernanke, believed that the solution to this problem lay in generating demand by using the ‘easy monetary policy’ as propagated by the ‘Keynesian Theory’.

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