Keynesian vs. classical? Largely irrelevant when you consider the elephant in the room: globalization and a shift of capital from the US and other developed economies to the third world. This is the fundamental problem with the Western economies (including Japan). Arguing about Keynesian vs. Classical economics is like arguing about the arrangement of deck chairs on the Titanic after it hit the iceberg. To the extent it is relevant, I would say that at least most stimulus seems to be more likely to be kept in the US economy, but I'm not sure the effect is worth arguing over. Even a lot of infrastructure projects are using foreign labor.