Comments on: Why They Heart Keynes

By: Murali

Murali — Tue, 24 Jan 2012 07:29:50 +0000

These finance guys are funny. They teach that a large institutional investor is better than an indiviidual because they can collect information and monitor managers more efficiently. And when comes to governments ability to do the same as a collective action, than individuals inabliltiy to have full information, they dismiss it.

By: Monty Pelerin's World » Why Keynesianism is Attractive

Monty Pelerin's World » Why Keynesianism is Attractive — Fri, 06 May 2011 11:17:39 +0000

[...] Louis Zingales provides a concise explanation of why Keynesianism is so popular, despite its theoretical and empirical failings: Keynesianism has conquered the hearts and minds of politicians and ordinary people alike because it provides a theoretical justification for irresponsible behaviour. Medical science has established that one or two glasses of wine per day are good for your long-term health, but no doctor would recommend a recovering alcoholic to follow this prescription. Unfortunately, Keynesian economists do exactly this. They tell politicians, who are addicted to spending our money, that government expenditures are good. And they tell consumers, who are affected by severe spending problems, that consuming is good, while saving is bad. In medicine, such behaviour would get you expelled from the medical profession; in economics, it gives you a job in Washington. [...]

By: Peter Klein

Peter Klein — Mon, 30 Mar 2009 13:45:02 +0000

Jason, even more to the point, those economists who advocate counter-cyclical policy virtually always favor a particular pattern: during a recession, increase government spending, but never cut taxes; during a boom, increase taxes, but never cut government spending. The net effect is to increase the government’s budget during any phase of the cycle.

By: Jason

Jason — Mon, 30 Mar 2009 09:35:55 +0000

What about the prescription that governments should run surpluses during good times? It is standard Keynesian fare as well, but something that politicians routinely ignore. The past 8 years tell us that you don’t need any Keynesian economists at all to get governments to be irresponsible with their spending.

Wouldn’t the country have done much better if THAT part of Keynesianism was followed?

By: Bob Layson

Bob Layson — Thu, 12 Mar 2009 16:50:54 +0000

The true stimulus to produce is the output of other, non-competing producers (see the work of W H Hutt) being used to bid, via money, for ones own products. Spending is not the heart of the matter. If prices and product are right then spending will take care of itself.

Money is not demand even though money is used in demanding. Money makes for money prices and more money makes not more demand but merely higher prices.

By: Acerca do “consenso keynesiano” « O Insurgente

Acerca do “consenso keynesiano” « O Insurgente — Thu, 12 Mar 2009 10:28:13 +0000

[...] Acerca dos comentários de Zingales, leiam também o que escreve Peter Klein, [...]

By: Peter Klein

Peter Klein — Thu, 12 Mar 2009 00:36:55 +0000

http://en.wikipedia.org/wiki/Paradox_of_thrift

By: David

David — Thu, 12 Mar 2009 00:12:07 +0000

how do you make the claim the Keynesian economics tells consumer that saving is bad???

By: dgerard

dgerard — Wed, 11 Mar 2009 21:03:05 +0000

The Meltzer commentary on that page is quite refreshing.

http://www.economist.com/debate/days/view/280

By: Keynesians hate freedom at catallaxyfiles

Keynesians hate freedom at catallaxyfiles — Wed, 11 Mar 2009 20:24:18 +0000

[...] is being polite. Peter Klein is less so. the Keynesian delusion afflicts not only policymakers, but professional economists as [...]