politcal economics krugman and stiglitz ideas political economicsDiscuss the role of institutions laws policies and social norms in the creation of the American welfare state after WWII. Explain the role of changing power relations in the development of te welfare state and the creation of what Paul Krugman calls The Great compression. Discuss how institutions laws social norms and politic were used to undermine the welfare state reverse its achievements and pave the way for what Paul Krugman calls The Great Divergence. Write an essay presenting a Keynesian Theory of the Great Recession. Your essay is a narrative of the long term determinants of the 2008 financial meltdown and the subsequent recession. The great Recession was the product of changes that slowly developed in the United States long before the onset of the crisis. Your answer must include policy changes the restructuring of power relations and all the contributed to the crisis.