I so wish economists stop using words like death of a theory. We have had so many deaths in the economic research history. There have been papers claiming Death of Beta, Death of money as a target for inflation, Death of Keynesian economics etc. And each time they come back making it look like a bollywood movie/ hindi soap opera where leading characters keep coming back after deaths!!
I was really surprised by this paper from James Bullard, head of St Louis Fed (exec summary here, ppt here). He says the crisis proves there is no use for fiscal policy as a stabilization tool and hence there is death of this theory. I was even more surprised to see someone calling death of fiscal policy for stabilization purposes as we have seen some real action in this crisis.
He says this crisis led to resurgence of fiscal policy but the results were disappointing: