Further considerations on the liquidity trap; a rebuttal to Daniel Kuehn.
Posts Tagged ‘Keynesian’
On Unemployment and Industrial Restructuring
Krugman, once again, fails to take into all the factors in his mental calculations. This time he fails to make an objective critique of Schumpeter’s and the neo-classical theory on unemployment and fiscal spending.
Neither Keynes nor Friedman
The Federal Reserve did try to bailout banks during the Great Depression, Hoover did outspend every prior president in an attempt to stimulate the economy and no recession is caused by a drop in aggregate demand. These are Keynesian myths.
Why Economic Stimuli Don’t Work
There are already talks of a second stimulus package. This will only bring about greater poverty and greater illusion of recovery. The future remains bleak for world prosperity.
Roosevelt’s Depression of 1937
The “Great Depression” is a thoroughly-studied event in the economic history of the United States. A less studied section of the Great Depression was the so-called “depression within a depression”, or “Roosevelt’s depression”. The monetarist theory is that the Federal Reserve ended its credit stimulus too early, or too abruptly, causing a decline in government and consumer spending. This latter argument is probably the more correct argument.
Thinking on the Margin
On a Saturday blog entry, Paul Krugman explained “marginal thinking” and applied “marginal thinking” to the stimulus and went on to claim that “when it comes to stimulus, there doesn’t seem to be a lot of marginal thinking going on.” Empirical evidence seems to disagree with his position.
Shift to Keynesian Economics
My comment on Paul Krugman’s latest blog post (Why Economics Is the Way it Is):
Dear Dr. Paul Krugman,
You are only partially correct. The shift in mentality (for the United States), I believe, came during the First World War. This war, save the American Civil War, was the first war in which the economy was first [...]