Keynesianism recommends counter-cyclical policies.

However, the cost of losing an independent monetary policy exists when domestic monetary authorities can commit an effective counter-cyclical monetary policy, stabilizing the business cycle.

He took it as axiomatic that what had prevented another Great Depression was the worldwide adoption of counter-cyclical policies.

In applying counter-cyclical policies during the beginning of the crisis, and the ensuing drop in State revenues, the government financing fell into deficit.

Between 1974 and 1976 the Labour government tried to operate a counter-cyclical policy to keep full employment in the face of the first world depression for forty years.

Economist Paul McCulley advocated "counter-cyclical regulatory policy to help modulate human nature."

Thus officials will be unwilling or politically unable to impose counter-cyclical policies during a boom.

But were that true, there wouldn't be any such thing as involuntary unemployment, or any need for counter-cyclical monetary policy.

Policies included low protection, decentralisation of wage fixation, financial deregulation, a broadly-based indirect tax, and the rejection of counter-cyclical fiscal policy.

Member States which have good control of their public finances and counter-cyclical fiscal policies have been able to provide financial incentives to help their economies exit the crisis.