I think the discussion in the comments section is good.
To darkness I condemn you...
Selfish Bump.
What about when Keynesians point out that there was no inflation in Japan's recession years of the late 80's through the 90's while their government expanded the money supply like crazy. Krugman calls it a liquidity trap and proof that we won't necessarily have hyperinflation. Why didn't Japan have inflation with all that growth in money supply?
Question: I have not read Keynes General theory but I am told that it is confused and muddled. Does one need to read the General Theory in order to understand Hazlitt's criticisms?
'It is difficult to imagine any normal person wishing to meet Marx for a third time.' - Alexander Gray, The Socialist Tradition
Laughing Man: Question: I have not read Keynes General theory but I am told that it is confused and muddled. Does one need to read the General Theory in order to understand Hazlitt's criticisms?
Yes, Keynes' GT is confusing. Hazlitt points this out in his intro. But don't worry - Hazlitt quotes extensively from the GT and even orders his chapters so they match up with Keynes' corresponding chapters.
Irish Liberty Forum
Define Keynesianism.
Keynesian isn't just a pejorative term for all the economics you don't like. You can't refute something you haven't defined.
If you mean the conept of sticky wages, that will be impossible to disprove theoretically. Sticky wages are an empirically based assumption and so would need to be countered with evidence.
If you mean fiscal stimulus as a way to relieve falling aggregate demand, that has already been discredited by almost the entire economics community, despite what certain public figures would like to have you believe. Most New Keynesians don't believe in fiscal stimulus.
The only other aspect of Keynesianism I can think of that still gets mentioned is the liquidity trap, which relates to barriers on monetary policy. If anything, this idea should be championed here.
consequentialist.wordpress.com
Maybe because it's debt to GDP ratio went from something like 60% to 260%? And because individaul savers financed all of the government borrowing?
Remember, Keynsian spending can be funded by:
1) Taxes
2) Gov't Borrowing
3) Monetization
And the primary method Japan's gov't used was #2 above. Then again, they also had a 'lost decade' and more years of stagnant growth (according to government numbers).
Do you think American citizens can finance the massive expansion in government spending here?
=0
There are extreme qualitative differences between Japan's economy then and America's now. A more apt comparison would be what happened in Argentina, where they didn't seem to have any kind of liquidity trap.
Harry Felker: wilderness:I also noticed that graph states it's about 15 cents, yet, Ron P. and others say it's about .03 or .04 cents. But as I mentioned you probably right the numbers are more like .0001 or something by now. Last I checked, it was $.04, that was pre Bush stimulus.... If we use gold prices without the congressional fixes (should be $2000+ by now) we are less than a penny... When the chickens come to roost, $.0001 will be generous....
wilderness:I also noticed that graph states it's about 15 cents, yet, Ron P. and others say it's about .03 or .04 cents. But as I mentioned you probably right the numbers are more like .0001 or something by now.
Last I checked, it was $.04, that was pre Bush stimulus....
If we use gold prices without the congressional fixes (should be $2000+ by now) we are less than a penny...
When the chickens come to roost, $.0001 will be generous....
Pardon my ignorance, but I have never heard of these fixes before. Could you elaborate?
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