The UK Government this week became the first of the leading industrial countries to adopt an explicitly Keynesian approach to the recession, but it is clearly not going to be the last.

Barack Obama's team are talking about a package of some 3% of Gross Domestic Product, or three times the size of the UK's. France, Germany, Spain and Italy are all talking about fiscal stimulus with the European Commission explicitly recommending this week a package worth 1.25% of GDP. Suddenly we are all Keynesians now.