How I got well in India for $50 Nov 1, 2009
Stimulus is either totally unwarranted government waste or a Keynesian magic bullet. Government health care is either socialism, or should be included in the Bill of Rights. (Salon)
Obama: Twelve months on, the star falls back to earth... Oct 30, 2009
Obama: Twelve months on, the star falls back to earth - Americas, World - The Independent. from The Independent & The Independent on Sunday. (The Drudge Report)
Miracle economic hangover cure Oct 30, 2009
Economists discover miracle hangover cure: drink less. If economists ruled the world, there would be no more hangovers. (Sydney Morning Herald -- Opinion)
Economists discover miracle hangover cure: drink less Oct 30, 2009
If economists ruled the world, there would be no more hangovers. As the 5pm kick-off for Friday night drinks approaches, consider how a rational economist would act. (Sydney Morning Herald -- Opinion)
Experts Warn: Tax Hikes Would Undercut Economy Oct 29, 2009
The authors counter that Keynesian economic policies, government planning, and demand-side economics inhibit business investment and economic growth. They warn that, by 2010, America could be the nation with the highest tax rate on investment, savings, corporate profits and stock ownership of any country in the world. (Human Events Online)
Economists try for the knockout Oct 28, 2009
The latest slugfest has New Keynesian Paul Krugman of Princeton University up against the New Classical, John Cochrane of the University of Chicago ... " On the stimulus, though, Krugman achieves a knockout punch. The view that extra government spending "crowds out" an equal amount of private spending, so that its net stimulus effect is zero, would be true only if the economy were at full employment. Indeed, the Chicago School tacitly assumes that economies are always at full employment. They... (Sydney Morning Herald -- Business)
Toddlers Buy Houses When Stimulus Trumps Reason Oct 27, 2009
All those barbecues and chaise lounges are consumption, and to a devout Keynesian, consumption is just about always good if it happens during a recession ... Devout Keynesians are, we all know, wall-to-wall in the White House ... The IRS allowed politically charged Keynesian concerns to influence its decisions about how best to enforce this new law. (Bloomberg -- Columnists)
The truth about banks and dogs Oct 24, 2009
And yet, the primary reason for such behavior of banks is actually the Keynesian policy of rescuing the banks thought too big to fail, and in effect underwriting their future bad behavior. This is exactly the parallel of small dogs, in that despite their very survival being at the hands of their masters, banks have become overly aggressive: knowing full well that any misstep will simply lead to a rescue by the governments, in much the same way that small dogs expect their masters to bail them... (Asia Times Online)
* Uncertainty and risk in economic theory Oct 24, 2009
The latest slugfest features New Keynesian champion Paul Krugman of Princeton University and New Classical champion John Cochrane of the University of Chicago ... But the attack on it will never succeed unless policy Keynesians like Krugman are willing to work out the implications of irreducible uncertainty for economic theory. (Taipei Times, Taiwan -- World)
Another view: WWII deficit very different Oct 22, 2009
The soothing Keynesian adage on deficits "we owe it to ourselves" applied. In the three years just after World War II, the United States eliminated a lot of its debt through high inflation, which peaked at 14. (Montana Standard, MT)
The right (and political) reasons for mini-stimulus Oct 20, 2009
Doing away with Keynesian economics, will not happen. The Keynesian philosophy is to ingrained in both the Republican & Democratic parties. (Atlanta Journal-Constitution -- Opinion)
Difficulty ahead Oct 20, 2009
The first is the classic Keynesian approach -- eloquently stated by the historian Robert Skidelsky (also on our show this week) -- if consumers are not spending and are overly cautious, the government must spend to stimulate the economy. The conservative critique of this option is that the result will be high deficits, which in turn will cause a loss of faith in the American dollar and American bonds. (CNN)
Clinging to misguided mentalities Oct 20, 2009
Yet there are two particular facets of today's inflationism that make "Keynesian" policymaking extraordinarily dangerous. First, the global backdrop is one of unchecked credit and the absence of any disciplining global monetary regime. (Asia Times Online)
Horse Sense: A Teddy Roosevelt Republican takes on the Reagan Republicans Oct 18, 2009
Otjen's positions in support of abortion rights, gay marriage, a higher top federal income tax rate, Keynesian economics and U.S. withdrawal from Iraq and Afghanistan are clearly out of step with at least most Republican elected officials in Montanans. Of course, anyone who meets the legal qualifications and pays the filing fee is free to run for office. (Montana Standard, MT)
Dow crosses 10,000; on the right, crickets chirp Oct 15, 2009
The Fed & the Government are basically re-inflating the bubbles that just burst, plus a few new ones, using massive deficits, Keynesian voodoo economics, and money printing. The bubble(s) are going to burst, and this time it will be worse. (Atlanta Journal-Constitution -- Opinion)
Buzz Aldrin: A different kind of moon race Oct 13, 2009
As a progressive and a Keynesian, it's exactly the type of investment in the real economy that I like. 00004000. (Sydney Morning Herald -- Opinion)
Stimulating Debt Oct 13, 2009
But it was central to the Keynesian orthodoxy of the last century, and it has persisted no matter how often it's discredited. "There is no more persistent and influential faith in the world today than the faith in government spending," wrote economist Henry Hazlitt in 1946. (Investors Business Daily)
Ors00004000zag: Economy Still Needs Government Aid Oct 13, 2009
It seems to me That the Governments adoption of Keynesian Economics(That Govt's ... Are you another one of those Keynesian protectionists. (CBS News -- Early Show)
Sensibly done, government regulation of the financial markets can work a treat. Oct 12, 2009
The Howard government's Keynesian medium-term fiscal strategy - to balan 00004000 ce the budget on average over the cycle - plus its privatisation of Telstra left Kevin Rudd with a budget surplus and no net debt, meaning he could spend big on fiscal stimulus without concern. (So much for the scurrilous joke that the departing Peter Costello has been awarded the Herbert Hoover Prize for Economics. (Sydney Morning Herald -- Business)
Cloistered Media Libs Don't Get It Oct 10, 2009
You must also be blind to the wholesale fraud in his tested and failed Keynesian backloaded "stimulus" bills. But how do you defend his populist campaign promises to restore transparency to government and not increase taxes on 95 percent of the American people. (Human Events Online)
Perils of premature stimulus withdrawal Oct 9, 2009
In truth, this depends entirely on another Keynesian concept - that of animal spirits. Economists are divided on the multiplier effect of government spending. (Sydney Morning Herald -- Opinion)
Recession: Are we out of the woods? Oct 9, 2009
Over the last one year or so I have been arguing in this column that the current recession has clearly Keynesian features ... Academic work will continue to ascertain the typology of the current recession was it Keynesian or simply a consequence of unregulated financial markets ... Hence the previous episodes were more problems of structural change as compared to the clearly Keynesian nature of the current episode. (India Times)
Bernanke works onas jobless tally mounts Oct 8, 2009
It would appear that proponents of Keynesian economics assume that government deficits and monetary expansion work their effects instantaneously in re-establishing full employment ... In contrast to a Keynesian model of instantaneous full-employment, Hayek argued that attempts to block the market mechanism could unnecessarily extend a recession or even make it worse ... Contrary to Keynesian assumption of demand deficiency, the US has had excessive aggregate demand in relation to its national... (Asia Times Online)
How to disarm theliquidity bomb Oct 7, 2009
Higher short-term interest rates would give US savers at least a zero real after-tax risk-free return on their money, thus ending the odious Keynesian "euthanasia of the rentier" that Bernanke and his predecessor, Alan Greenspan, have been undertaking since 1995. Most important, a really frightening crisis in the Treasury bond market would bang the heads of Congress and the Barack Obama administration against the wall, and force them to start getting the budget deficit under control. (Asia Times Online)
Book Review Animal Spirits Akerlof ... Oct 7, 2009
In their revival of Keynesian theory, George Akerlof and Robert Shiller, point to five animal spirits, which they consider influential forces in the economy and players in the mania and panic cycles evident in both property and stock markets. Confidence. (Suite101.com)
Dream policy not the right tool for the job Oct 6, 2009
Arguably its centrepiece is its fiscal stimulus packages, estimated to have totalled about $80 billion and which Treasury's new Keynesian models estimate will save up to 210,000 jobs ... Against the fact of jobs being lost in even the politically favoured segments of the economy, let alone just about everywhere else, the beneficiaries of the Government's new-found Keynesianism form one exclusive club indeed. (Sydney Morning Herald -- Business)
Obama's permanent depression Oct 6, 2009
Keynesian spending creates a deficit that sucks all the available capital out of the grassroots economy and transfers it to the Treasury market ... In the Keynesian world of Larry Summers, director of the White House's National Economic Council, and the Obama economics team, the problem is that Americans save too much and spend too little. (Asia Times Online)
Double or quits Oct 6, 2009
Keynesian economists who had been calling for greater government intervention in the economy ... Instead, we are left with the Keynesian nonsense of: 1 ... Sure enough, my idea of the perfectly moronic Keynesian, Paul Krugman, immediately obliged with the following article in the New York Times, on October 2, the same day that the US jobless reports were released (perhaps the professor was given advance warning). (Asia Times Online)
We Are Not All Keynesians Yet Oct 6, 2009
His most important mistake one made by many others is to accept the Keynesian explanation of the Great Depression: the Fed s effort to expand the money supply was like pushing on a string, he says ... The same Keynesian perspective leads Bartlett to endorse Obama s 2009 fiscal stimulus plan ... To his credit, Bartlett recognizes that Keynesian economics is mainly a rationale for things that governments everywhere wanted to do anyway. (The American Conservative)
Stop The Spending And Cut The Taxes Oct 3, 2009
We've warned since last year that any "stimulus" built on Keynesian spending is doomed to fail. The idea that there's a multiplier effect that is, a net GDP gain from the government taking your money and spending it for you is, quite plainly, absurd. (Investors Business Daily)
BYU-I president criticizes stimulus Oct 2, 2009
po wrote on Oct 1, 2009 6:28 PM:" Well that makes me sad, I wondered what his position was on the federal reserve and government stimuli. I was hoping he had a better understanding of the situation, but turns out he's a proponent of the failed theory of keynesian economics. You cannot spend your way out of debt. Government can't fix the economy by manipulating it. Every dollar the fed creates devalues your dollar. It is taxation without representation by unelected and unaccountable quasi-federal... (Rexburg Standard Journal, ID)
More trouble for U.S. in Pakistan Sep 30, 2009
The apologia differ over the centuries; sometimes it is the priestcraft using mystery and ritual to tell the subjects that the king is divine and must be obeyed; sometimes it is Keynesian liberals using their own form of mystery to tell the public that government spending, however seemingly unproductive, helps everyone by raising the GNP and energizing the Keynesian multiplier. But everywhere the purpose is the same to justify the existing system of rule and exploitation to the subject... (Atlanta Journal-Constitution -- Opinion)
Click to read:Obama: G-20 Pulled Economy Back from Brink Sep 26, 2009
Plus he was handed an economy in the kind of freefall that classic Keynesian theory suggested only massive gov't intervention (read: increases in debtload) could reverse. So, thats what they did. (CBS News)
Gross domestic fudging Sep 23, 2009
If therefore we are to follow Stiglitz and calculate GDP by numerous definitions, let's take the definition that actually represents the genuinely valuable output of a real economy and switch to gross private product (GPP), defined in Keynesian terms not as consumption plus investment plus government spending plus net exports, but simply as consumption plus investment plus net exports. Real US GDP peaked in the second quarter of 2008 and has dropped 3. (Asia Times Online)
The International Monetary Fund: Back from the dead Sep 22, 2009
His Keynesian instincts (he hails from France s Socialist Party) proved right for the times. His call for a global fiscal stimulus in January 2008, for instance, now seems prescient. (The Economist)
ROSS GITTINS Sep 21, 2009
It was eminently predictable and now it's happened: the unabashed return of Keynesian fiscal policy. This was the message that shone from this week's midyear economic and fiscal outlook document, which belatedly provided the fine print to accompany the grandly named Economic Security Strategy announced three weeks earlier. (Sydney Morning Herald -- Business)
The Redemption of Keynes Sep 19, 2009
Keynesian economics, he argues, has at its core a deep appreciation of market psychology and unlike the efficient-market camp uncertainty ... He chronicles the decline of Keynesianism, from Milton Friedman's monetarism through the missteps of Alan Greenspan: "As memories of the Depression faded, economists fell back in love with the old, idealized vision of an economy in which rational individuals interact in perfect markets, this time gussied up with fancy equations.". (BusinessWeek)
Carl's Jr: When in trouble, blame socialism Sep 18, 2009
Which brings us to Cochrane's key point, aptly seized upon by Nick Rowe at Cochrane's central critique of Keynesianism is summed up in one declaration. Paul's Keynesian economics requires that people make plans to consume more, invest more, and pay more taxes with the same income ... But from a Keynesian point of view, Cochrane is totally misunderstanding how economies work. (Salon)
Economic saviour Sep 16, 2009
In classic Keynesian fashion, Beijing has been spending its way out of the crisis. Stimulus package. (BBC News -- Asia-Pacific)
No dialing back Sep 15, 2009
This is the nature of inflationism, although this dynamic is nowhere to be found in Keynesian doctrine. It is my view that this tipping point was reached some time back. (Asia Times Online)
There will be no recovery until debt tumour is excised Sep 15, 2009
You are the economy; the tumour is a massive accumulation of private debt; your doctor is neoclassical economics; and the retired colleague is a so-called ''Keynesian'' economist (who doesn't know it - since her medical textbooks were poorly written - but she's actually following another economist called Paul Samuelson, not Keynes) ... A small band of "post-Keynesian" economists, of whom I am one, have kept this theory alive. (Sydney Morning Herald -- Business)
Kenneth Davidson Sep 14, 2009
He remains a committed Keynesian and opponent of economic rationalism. In his spare time he is co-editor of Dissent magazine. (Sydney Morning Herald -- Opinion)
Why capitalism fails Sep 13, 2009
But where most economists drew a single, simplistic lesson from Keynes - that government could step in and micromanage the economy, smooth out the business cycle, and keep things on an even keel - Minsky had no interest in what he and a handful of other dissident economists came to call bastard Keynesianism ... The 1960s were an era of solid growth, and although the economic stagnation of the 1970s was a blow to mainstream neo-Keynesian economics, it did not send policymakers scurrying to Minsky... (Boston Globe)
The Trouble With Tanenhaus Sep 10, 2009
Bush did push tax cuts through Congress, but also a Keynesian one-time tax rebate that movement conservatives detested. Movement intellectuals have since become increasingly skeptical of tax cuts and now routinely deride the starve the beast hypothesis that tax cuts indirectly reduce the size of government. (The American Conservative)
From Huffington Post Sep 10, 2009
Priceless: How The Federal Reserve Bought The Economics Profession. The Federal Reserve, through its extensive network of consultants, visiting scholars, alumni and staff economists, so thoroughly dominates the field of economics that real criticism of the central bank has become a career liability for members of the profession, an investigation by the Huffington Post has found. (Harper's Magazine)
How "ice-nine" caused the credit crunch Sep 10, 2009
"The federal deficit will only become more unsustainable as a result of this unthinking application of Keynesian fiscal stimulus to local food markets," said an economist. "Furthermore, if people wanted to eat misshapen carrots and arugula they would grow it themselves -- they don't need the White House to tell them what to buy.". (Salon)
Why does Michelle Obama hate farmers? Sep 9, 2009
"The federal deficit will only become more unsustainable as a result of this unthinking application of Keynesian fiscal stimulus to local food markets," said an economist ... Such Keynesian thinking underlies the Obama administration's economic policies -- and the freshwater economists are furious ... For 25 or so years they tolerated the Fed's efforts to manage the economy, but a full-blown Keynesian resurgence was something entirely different. (Salon)
Lessons from a virtual bank run Sep 8, 2009
Such Keynesian thinking underlies the Obama administration's economic policies -- and the freshwater economists are furious. For 25 or so years they tolerated the Fed's efforts to manage the economy, but a full-blown Keynesian resurgence was something entirely different ... Back in 1980, Lucas, of the University of Chicago, wrote that Keynesian economics was so ludicrous that "at research seminars, people don't take Keynesian theorizing seriously anymore; the audience starts to whisper and... (Salon)
China alarmed by US money printing... Sep 8, 2009
" It's bizarre, it's mystifying, and publications like The Telegraph would do their readers a great favor if they would present the other side of the coin. B.Karn PhD, Economics M.Karn on September 07, 2009 at 10:07 PM What the article fails to point out is that a certain faction of American's are alarmed by the fed's monetary easing policies. The faction with brains. LOL dan the yank on September 07, 2009 at 10:07 PM The Fed has no choices left.If they dont print,then its a classic deflationary... (The Drudge Report)
PAPER: USA 'FACES ARGENTINA-STYLE FALL'... Sep 7, 2009
The study represents a challenge to the widely held view that Keynesian fiscal policies helped the US recover from the Depression which started in the early 1930s. The authors say: "[Franklin D Roosevelt's] interventionist policies and draconian tax increases delayed full economic recovery by several years by exacerbating a climate of pessimistic expectations that drove down private capital formation and household consumption to unprecedented lows.". (The Drudge Report)
We are all Japanese now Sep 5, 2009
Asia Times Online :: Asian news and current affairs. This is the way the world ends This is the way the world ends Not with a bang but a whimper. (Asia Times Online)
The Worlds Most Expensive Road Signs Sep 5, 2009
ByteMe - your liquidity trap Keynesian mumbo jumbo is a load of crap. What you really endorse is central planning as if a few suits inside the beltway are so prescient and wise as to determine exactly which buttons to push and which levers to pull. (Atlanta Journal-Constitution -- Opinion)
County courting Eleutian Sep 4, 2009
Shane wrote on Sep 3, 2009 3:12 PM:" Has anyone at Forward Cody, the Cody Enterprise, the Cody City Council or the community at large ever taken any kind of econ. class that was not based on Keynesian fallacies?Anyone?Anyone?Bueller?Bueller? ". OG Codyite wrote on Sep 3, 2009 2:45 PM:" And still no one at the Enterprise bothers to call Eleutian. This is lazy reporting. Forward Cody is trying to make the people think they are doing something when they haven't done anything. And from the looks of... (Cody Enterprise, WY)
Mr. Paulson goes to Washington Sep 3, 2009
The Keynesians versus the Austrians -- forever they shall battle, red in tooth and claw, and the struggle is unlikely to ever be resolved to the satisfaction of either side ... It's like the old economist joke goes -- in a recession, everyone becomes a Keynesian. (Salon)
Norway's Iraqi ace-in-the-oil-well Sep 1, 2009
Keynesian models explain this: Hoover didn't do enough to stimulate demand. Roosevelt did more (though still not quite enough). (Salon)
Is America still depression-proof? Sep 1, 2009
Inflation caused by Keynesian-style government spending and easy money policies can have unintended consequences and create economy-wide unsustainable imbalances that can lead to disaster. As the great Austrian economist Ludwig von Mises once said, "We have outlived the short-run and are suffering from the long-run consequences of [Keynesian] policies.". (Christian Science Monitor)
A question for Sierra Vista conservatives Sep 1, 2009
" you gotta be kidding wrote on Aug 31, 2009 8:14 AM:" Since some of you bring up Keynesian economics, let me remind you that his policies under FDR led to the longest period without an economic downturn in our history ... Because a Political Science teacher says it does not make it true, colleges are teaching Keynesian economics for crying out loud. (Sierra Vista Herald, AZ)
Dollar Is Funny Money in Push for World Currency Aug 31, 2009
If such a move were to gather steam, Keynesians would have yet another reason to celebrate the resurgence of their ideas ... Keynesian White House ... This is, after all, the administration that put all of its cards on the largest Keynesian stimulus package in U.S. history. (Bloomberg -- Columnists)
Today's economic situation is ironic paradox Aug 30, 2009
They correctly saw that it was truly a Keynesian moment, named after John Maynard Keynes, the Great Depression-era economist who explained how government spending could save an economy. The bailout hasn't been well planned, nor was the money deployed efficiently, but these are quibbles. (Anchorage Daily News)
How many oil speculators do we need? Aug 29, 2009
"In the review of the data in this brief paper, we find that noncommercial players now constitute about 50 percent of those holding outstanding positions in the U.S. oil futures market, compared to an average of about 20 percent prior to 2002. The change in market composition was driven by the rapid entry of noncommercial participants and was the principal factor behind the increase in total open interest. It is also highly correlated with the run-up in oil prices. Moreover, as will be expounded... (Salon)
Prada to Pravda Aug 29, 2009
From my viewpoint, Afghanistan is an important issue because understanding the end game may well offer a vignette of the thinking on all other radical measures being planned and executed by the US government - ranging from the Keynesian economy of zombie companies and individuals to the next steps on medical services reform. Drugs and reality In the Soviet Union, there was an appropriate saying, "The government pretends to pay the workers, and workers pretend to work." The downside of that... (Asia Times Online)
Bernanke Bonus Mustn't Make Hedge-Fund Guys Blush Aug 27, 2009
President was always going to leave Bernanke in the saddle, even if he does lack the all-important Alumnus of Goldman Sachs Group Inc. qualification that seems to be a prerequisite for anyone wanting to run anything in the United States of Keynesian Experimentation. Working out what bonus, if any, Bernanke might merit for his eight years steering the worlds biggest economy, though, is a tricky task. (Bloomberg -- Columnists)
Deficit to Be $1.58 Trillion This Year Aug 20, 2009
58 Trillion This Year - CBS News. WASHINGTON, Aug. 19, 2009. (CBS News)
* Chinese arent going to end the economic crisis Aug 19, 2009
The conventional wisdom is that China has taken the bold steps necessary to tackle the global downturn, and that its mixture of Keynesian pump-priming and Leninist centralised control will help drag the rest of the world back to prosperity. Strategically, its a pivotal moment. (Taipei Times, Taiwan -- World Business)
Flamingos are whatever color Obama says they are Aug 19, 2009
(return of) joe wrote on Aug 18, 2009 12:56 PM:" rjs...In reference to the question that you posed to me, it's called Keynesian theory, as opposed to Smith's theory. Both are viable economic theories that have practical uses.To think "either or" is ignorant, pure and simple. ". rjs wrote on Aug 18, 2009 1:19 PM:" BIL,The basic cause was no just deregulation. It was a combination of factors, many begun under Carter and some enacted under Reagan. But contrary to your's, joe and phil's posts, it... (Waterloo Courier, IO)
