Keynesian News

The rehabilitation of Keynesian economics that I mentioned here seems to be continuing. The fifth of my publicly-funded infrastructure projects now seems to be falling into place: Olympic Village to be fully funded by taxpayers. Just the Olympic Village for now, but all the developers are in poor financial shape and nobody will be surprised when the government steps in to bail out other areas of the project.

One of the other projects I mentioned was a high-speed rail link to the Midlands and beyond. Interestingly, Network Rail have announced today that they would like to electrify the existing Midland Main Line and finance it themselves. I don’t know what effect this will have on the business case for a new high-speed line – maybe the upgraded existing line will do the job?