Akvod said:
So you deny that increasing G cannot shift the AD curve? |
It can't shift it? No. That the shift will be near useless and lead to large problems in the future, yes?
If you'll go back to New Keynsian beliefs... the most dominate school of Keynsian's at the moment... you'll notice they argue what everyone else argues.
Using expnasive monetary polcies will only lead to inflationary expectations and only store up problems for the future.
You know... like what caused the US Recession. You put off minor recessions and it leads to a big recession.
Your own quoting of Keyenes puts it best "In the long run we'll all be dead." Just with an added "So who cares if our children or grandchildren are screwed." Old Keynsian economics is all about living in the now at the expense of the future.
We're paying the price for that kind of thinking. New Keynsians believe more in altering the inflation rates and minor expansionary policies that lead to longterm benefits... usually only when it's a HUGE external shock.
