".....politicians could not be trusted with operating such a Keynesian counter cyclical policy, essentially because they imagined they could beat the Phillips curve using direct controls on prices and incomes."
Yes the social democratic agenda had long run fiscal limits but not because of some long run inter temporal balance constraint
But
Because
" ....we failed to raise taxes and cut spending in a boom. "
Far from a denunciation of Keynesian countercyclical fiscal policy, it was an admission that politicians could not be trusted with operating such a policy, essentially because they imagined they could beat the Phillips curve using direct controls on prices and incomes. The fact that fiscal rather than (government controlled) interest rate policy was being used as the countercyclical instrument here was incidental.
