(Preview Episode I,

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The Recent Recession and the Economics of Developing Countries

This will be looking into the phenomenon of the recent US recession in light of its relationship with the economies of developing countries . It seems that Keynesian Economics managed to save the US Economy from the inefficiencies caused by the free market economy , but how can such a tragedy be handles in small developing countries wherein governments don 't have the same resources to bailout corporations ? This writer believes that it is important to analyze the repercussions of this

phenomenon as there are many developing countries whose development and more specifically their economies , are modeled after the economy of the United States

In Episode 1 , The Battle of Ideas ' we saw that Keynes believed that the private sector decisions sometimes lead to unproductive macroeconomic outcomes and therefore , he advocated active policy solutions by states or governments . It was followed by huge economies in to survive the Great Depression of the 1930s but was dismissed in the late 1970s-1980s (and seemingly ) until now for the free market economy or with what Hayek has been advocating decades back . But recently , due to the economic recession that the US and much of the world 's huge economies experienced , it would seem that Keynes can be correct after all . This can be illustrated by the fact that without numerous bailouts from the federal government , US capitalism would have collapsed under its own knees

This statement in Episode 1 by Robert Skidelsky...