Akvod said:
Kasz216 said:
Akvod said:
My Macroeconomic teacher stated that the second recession was caused due to FDR wanting to listen to the Classical economists, and balancing the budget that time, cutting back government spending, engaging in contractionary policy.
Also World War II in itself, was a natural Keynesian policy. It was simply a natural way, of increasing C+I+Nx+G
And it's hard to use monetary policy for expansionary policy when the interest rates are near 0.
But, I need to study more, if I'm going to advocate to cut back on the expansionary policies now (now that the recession ended), keep it (because unemployment is still up), or to gradually cut back on it (as AD shifts right due to C, cut back on G)
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Wow... your economics teacher should be fired. VERY FEW economists believe that to be the case. Heck these Greece crash was basically caused bt kensyian like economics. I mean, if you learned this in history class i'd understand... but economics? Awful.
It's a movement largely of laymans and polticians.
It reminds me of Freudian psychologists.
I mean heck, look at Greece to why it doesn't work.
Fruedian economics don't fix a depression faster... they smooth it's effects at the price of extending the depression.
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So... consumer confidence is a myth? Greeks are in the mess, because they engaged in expansionary/inflationary policies, when they were ALREADY in equillibrium.
I should clarify, I'm advocating NEO-Keynesian, who accept that in the LONG RUN, expansionary policies only result in inflation.
You guys are being CLASSICALISTS, who believe that any inflationary policy, both in the long AND SHORT term ONLY result in inflation.
Let me ask you all of you guys one question.
Do you believe in sticky wages? If yes, you are an Keyensian, or at best, a Neo-Classicalist.
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