Whats wrong with Keynesian economic theory Possibly the strangest phenomenon in all of economics is the absence of a long tradition of criticism focused on Keynesian economic theory. Keynesian demand management has been at the centre of some of the worst economic outcomes in history from the great stagflation of the 1970s to the lost decade and more in Japan following the expenditure program of the 1990s. And once again following the Global Financial Crisis it is incontrovertible that no stimulus program in any part of the world has been a success each one having been abandoned as conditions deteriorated under the weight of public