Yesterday, I linked to a re-enactment of Sargent and Lucas’ After Keynesian Macroeconomics — here is the paper.
Sargent and Lucas over-reach by pinning the entire mess of the 1970s on Keynesians:
these events did not arise from a reactionary reversion to outmoded, “classical” principles of tight money and balanced budgets. On the contrary, they were accompanied by massive government budget deficits and high rates of monetary expansion, policies which, although bearing an admitted risk of inflation, promised according to modern Keynesian doctrine rapid real growth and low rates of unemployment.
… still, it’s worth recalling that easy money and more government spending create their own problems, and are by no means sure to cure the ones we are currently suffering.