Proposal requested for a directive on commission's jurisdiction regarding certain matters

In the world of economics, a long-standing debate has resurfaced, pitting the theories of Cambridge theorist Keynes against a modern vogue that champions government non-intervention during economic downturns.

Keynesian theories, which advocate for government intervention to stimulate growth during recessions, have come under fire from many commentators who deem them outdated. This criticism is in response to the International Monetary Fund's (IMF) revised calculations, which suggest that the negative impact of austerity on growth is more severe than initially thought.

The increased public debts in countries that have applied austerity measures are a notable consequence of these policies. Critics argue that any cut in spending has a positive effect on growth, particularly in light of high public debt levels.

However, proponents of Keynesian theory counter this argument by highlighting the multiplier effect, a key concept in their economic theory. This suggests that increasing public spending or lowering taxes supports growth, as injecting a dollar into an economy via public investment increases GDP by more than a dollar.

Yet, critics question the applicability of the multiplier effect in today's economies. They argue that confidence in a government that cuts spending to restore public accounts can lead to increased investment and consumption.

Christine Lagarde, the head of the IMF, has responded to criticisms of austerity policies by questioning, "What is the alternative?" This query underscores the need for a solution to the perceived failures of austerity policies.

The Organisation for Economic Co-operation and Development (OECD) has also joined the chorus of criticism, declaring Brussels' austerity policy a failure. This declaration adds weight to the growing body of evidence suggesting that austerity hurts growth more than previously thought.

The current economic policy of the European Union was influenced by those who questioned the multiplier effect of fiscal policy. However, the specific individual or group that challenged this aspect is not identified in the provided search results.

Despite the ongoing debate, it is clear that the economic policy recipes of Keynes are no longer considered effective by most commentators. The significant increase in public debts in countries that have applied austerity measures underscores the potential negative effects of these policies.

In conclusion, the debate between Keynesian theories and modern economic thinking continues to rage, with both sides presenting compelling arguments. As Christine Lagarde's question, "What is the alternative?" echoes, a solution to the perceived failures of austerity policies becomes increasingly urgent.

Proposal requested for a directive on commission's jurisdiction regarding certain matters