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Marco Moreno
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congratulations Robert, for your mother beautiful story
Toggle Commented Dec 20, 2011 on Birthday - Bitter Sweet at Robert Paterson's Weblog
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Mark, I think central point and I apologize for my bad English. But what has made politics with his "rescue plan" has nothing of "Keynesian". What they did Geithner, Bernanke and Summers has nothing to do with Keynes. It's ridiculous. Only the money has been pulled by helicopter as he said Milton Friedman. Keynesian policies in the 70s died when the IMF ordered prioritize inflation targets over the employment goals. With active state involvement in economic activity. All that died in the '70s. IMF policies to control inflation as a priority goal, later joined the Washington Consensus. What is gained control of inflation?. Nothing. Only job loss. Full employment is the main Keynesian policy. Simply review the 50s, 60s and 70s. Decades of heavy use. For Keynes, the central goal of fiscal policy was to have a tool that allows you to cushion the economic cycle. This tool is the "automatic stabilizers" increase spending and reduce taxes in times of crisis, and lower spending and increase taxes in good times. This was not fulfilled. The control of inflation upset the economy, not improved. With inflation at 1%-2%, the investor could decide whether to gamble on Wall Street or start a business. The option was always bet on Wall Street. So the economy was destroyed.
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Marco Moreno is now following Mark Thoma
Jun 1, 2010
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Jun 1, 2010