IT seems that Mr Keynes is back in fashion.
During the first year of the currency crisis, economic frugality was all the rage. As the crisis enters its second year, regional governments are increasingly turning to public spending packages to prime their sagging economies.
The governments of the mainland and now Japan, Singapore, Hong Kong and Malaysia are all trying to revitalise domestic demand.
Indonesia, Thailand and South Korea would like to do the same if they had the funds and the International Monetary Fund would let them.
When the regional crisis broke in July last year, South Korea, Thailand, Indonesia, Malaysia and the Philippines naturally responded by axing infrastructure works, slashing imports and encouraging the tightening of belts.
At the same time, exports were expected to soar thanks to falling currencies. True enough, current account deficits have been reined in, but countries have got there the wrong way.
