Keynes

About a year ago, I wrote a profile on Keynes.

It seems to still make sense.

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2 thoughts on “Keynes

  1. Hi Orlando–A very interesting essay and I have enjoyed reading it.
    I think if policy makers and economists use Keynes ideas as they were intended and that is for the short run then it would be possible to change expectations, raise the aggregate demand and move the economy out of the liquidity trap, The key is for policy makes to move swiftly and decisively with robust fiscal measures that will impact economy positively. [To me, it is like taking a high dosage of anti-biotics (a booster) to recover from the flu. A patient of course, can be administered such a treatment for a short period of time but if used for a long period it will be less effective and could even kill the patient]. When asked about the long run, Keyens said “In the long run we will all be dead.” I don’t believe he intended his theory and analysis to be used for the long run.

    Regards
    Amr.

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    1. Hi Amr,
      how have you been? I haven’t heard from our friend Tuan.

      Yes, the antibiotics analogy seems just right. Too little, and you get sicker. Taken too long, the bacteria (“animal spirits”) learn to adapt, and the body (economy) remains sick.

      Something I can tell my students!

      Like

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