Public synchronized int incContador (int val)

Classified in Economy

Written at on English with a size of 3.86 KB.

Keynes: (83-46) brit economist, Ideas influenced by modern macroec./ K advocated interventionist government policy, using fiscal and monetary Measures to mitigate the adverse effects of recessions and depressions./ Western economies adopted Keynes's ideas during and after WW2 speciallly 50-60/ 70s Friedman and others challenged his thinking, but the crisis of 2007 has led To a resurgence in Keynesian thought, and Keynesian economics provided a basis For the policies of Obama and of Brown/ Keynes was proven correct when the German economy suffered hyperinflation in 1923,when the Weimar Republic Collapsed, and when WW2 broke out./ In post-WW1 Britain, unemployment was high. Keynes advocated price stability./ Keynes also favoured Government spending on public works as a response to unemployment./ Great Depression two works (Treatise On money/ Means to Prosperity) , Keynes argued for counter-cyclical public Spending/ these ideas were adopted in Germ, Swed and US after depression./ K Published 36 (General Theory of employ, int, money) This challenged the Neo-classical orthodoxy that free from government influence, markets would Naturally establish a full employment equilibrium/ The General Theory argued That demand, not supply, governs the overall level of economic activity. Demand = Consumption + Investment./ Keynesians support ideas Phillips Curve, which Predicted an inverse relationship between unemployment and inflation/ The Response to the global financial crisis 2007-08 saw a return to robust Government intervention – bank rescues, fiscal stimuli.Hayek (99-92) Austr school econ/ influenced by Darwin (Survival of the Fittest) market decide/ boom and bust cycle caused by government interference in free Markt/ issue- central banks cutting inte rates to weak economies (H said this Souldnt be touched)/ Peter Schiff argues that had that been the case pre the 07 Crisis (int rates would have been higher and damage econmy less)/ H microecon- Economy consist of a myriad of small transactions/ economy is too complex to be Understood- so interference by government is doomed to fail./ Bankruptcy is not A problem - solution. It cleanses the free market of firms that shouldn’t be There./ Vital to control inflation [a legacy of Hayek’s experiences of Hyperinflat post WW1]./ You can’t continue with Government deficits financed by Borrowing (debt) - argument supporting Austerity/ Financial crisis (who Was right) Crisis caused by Free Market policies and Light Touch Regulation/ Capitalism went crazy and caused the global meltdown/ Only solution Is Government Stimulus – no other source of consumption / investment/ Governments must invest to rescue failing banks/companies, guarantee debts of Troubled banks, launch debt-financed spending packages as a stimulus, and print Money if necessary/ US Government post 9/11 set interest rates too low [1%] for Too long and led to the borrowing / spending bubble./ Free Market would have Set rates much higher./ Austerity is the way (ex. Medicine- it tastes bad but The patient recovers quicker)

Entradas relacionadas: