8537
VIP Member
Memo: Keyesian economics is a fail. 2/1991 You didn't get it did you?
Indeed, Alan Keyes economic plan is pure shit fail.
or perhaps you meant Keynesian. Tell me, saveliberty, how is Keynesian economics a failure? Some specifics would be helpful.
Yep typo. Keynesian. You might want to read up on Milton Friedman, Keynesian turned opponent.
He theorized there existed a "natural rate of unemployment" and he argued the central government could not micromanage the economy because people would realize what the government was doing and change their behavior to neutralize such policies. He rejected the Phillips Curve and predicted that Keynesian policies then existing would cause "stagflation" (high inflation and minimal growth).[4] Friedman's claim that monetary policy could have prevented the Great Depression was an attempt to refute the analysis of Keynes, who argued that monetary policy is ineffective during depression conditions and that fiscal policy large-scale deficit spending by the government is needed to decrease mass unemployment.
Milton Friedman - Wikipedia, the free encyclopedia
You might want to read up on the experience of the US economy when it employed a monetarist Federal Reserve policy and pegged the money supply instead of interest rates.
And Keynes was right, of course, that traditional monetary policy is ineffective during a period of suboptimal employment. It's called a liquidity trap and we find ourselves in one right now.
He was also right when he demonstrated that movements in capital markets during a crisis are not based on rational modeling but instead on mentalities that magnify the problems instead of preventing them.
and he was right that the interest rates are not determined only by the supply and demand for goods but also by the changing desires of people to hold cash.