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The recent G-20 meeting appears to have embraced the Keynesian notion that in order to stimulate aggregate demand there should be a fiscal stimulus of about 2% of global GDP. Without going too deeply into the Keynesian theory the multiplier effect can then enable this direct stimulus to be translated into more jobs and investment, all of which will enhance aggregate demand in a self-reinforcing manner that should, at least according to the theory, arrest the contraction in global economic activity.Several major problems exist now for this diagnosis not the least of which is the nature of the multiplier effect and the ability and willingness of consumers and corporations to actually spend the additional purchasing power that governments are intending to create.