Keynesian economists, by contrast, think it is very important to distinguish between the long run and short run. In the long run, they generally would agree with the previous paragraph. But they would argue that “stimulus” policies can be desirable in the short run if there is an economic...
Keynesian economists generally say that as a result, governments should try to balance the cyclical nature of the economy by spending more during economic downturns and less during periods of prosperity. That way, when the economy isn't doing as well, increased government spending can boost demand...
Economists however have been denying all this. Especially with the rise of Donald Trump when attempts to improve the US balance of payments/international investment position were looked upon as clownish. But now the establishment has accepted that it needs to be addressed. But they don’t want t...
We concentrate on the forecasts by Her Majesty's Treasury (HMT), the Cambridge Centre for Business Research and the Economists for Brexit. It is argued that the estimates of HMT of the loss of GDP are likely to be overstated, but, nevertheless, there will probably be a fall in output. ...
by this mechanism, so micro-economists rightly neglect it. The macro economy taken as a whole, however, recovers *all* expenditures by this mechanism, so it has a huge, multiplicative impact on total output. That’s why they call it the multiplier. During recessions, the output gap is an...
Several respected Austrian economists that I have spoken with suggest that in late 2008 more monetary stimulus would have been appropriate. Next time we slide into a steep downturn, should we try an even bigger fiscal stimulus, or do monetary “level targeting?” I think the answer is obvious...
1Besides the aforementioned modified models, Branch and McGough (2009) have also pointed out that further research should focus on the social interactions of learning behaviors. Therefore, in order to describe how the social interactions affect the actions of agents, some economists have tried to ...
Can Fisher and Hoenig stand athwart the Keynesian tide at the Fed and get it to stop? Or for that matter, can the growing chorus of noted economists and analysts who openly question the need or wisdom of a QE2? I doubt it. The Keynesian Cowboys are saddling their QE horses and they ...
Other economists had argued that, in the wake of any widespread downturn in the economy, businesses and investors taking advantage of lower input prices in pursuit of their own self-interest would return output and prices to a state ofequilibrium, unless otherwise prevented from doing so. Keynes...
Although most modern economists reject the emphasis on money growth that monetarists encourage, some core tenets of the theory have become a mainstay in non-monetarist analysis. Understanding Monetarism Monetarism is an economic school of thought which states that the supply of money in an economy ...