Sunday, October 19, 2008

The Return of Keynesianism?

Nobelist Paul Krugman writes:

It’s politically fashionable to rant against government spending and demand fiscal responsibility. But right now, increased government spending is just what the doctor ordered, and concerns about the budget deficit should be put on hold.

From yesterday's FT comment page: "Man in the News: John Maynard Keynes"
[Keynes'] renewed influence can be seen everywhere: in Barack Obama’s planned stimulus package, for example. When George W. Bush said his administration’s plan to take equity in banks was “not intended to take over the free market, but to preserve it”, he could have been quoting Keynes directly.

Financial crisis haunts Milton Friedman's legacy:
U.S. economist Milton Friedman, the champion of unfettered markets, is under siege for theories that some blame for unleashing the global financial crisis.

His legacy is even being questioned on the leafy University of Chicago campus that he once called home.

4 comments:

Anonymous said...

Uhh, wish had time to scoop around for fascinating facts around the world. Don't have time or energy to do so lately. Use to be a know it all wise kid back in the high school. Well remember me Temoolen from 14th. Keep in contact.

Anonymous said...

http://media.economist.com/images/20081018/D4208WW0.jpg

:)

Ачболд said...

I think Milton Friedman would've supported providing liquidity to banks during this crisis because he's the one who's argued that the Great Depression happened because the Fed failed to do precisely just that. Although I'm sure he would've hated bank nationalizations. Also, it's no surprise that Chicago has anti-Friedman faculty. I've read somewhere that while the economic departments at Harvard, MIT, etc can staff the Council of Economic Advisers of only a Democratic president, the Chicago faculty can do that for both parties.

Ачболд said...

i mean economics departments, not economic