Bruce Bartlett: Keynes and Keynesianism – NYTimes.com

John Maynard Keynes Русский: Джон Мейнард Кейн...

John Maynard Keynes Русский: Джон Мейнард Кейнс Türkçe: John Maynard Keynes (Photo credit: Wikipedia)

English: Portrait of Milton Friedman

English: Portrait of Milton Friedman (Photo credit: Wikipedia)

This is a good article by Bruce Bartlett, writing in the Economix column of the NYT. It’s well worth a read.

via Bruce Bartlett: Keynes and Keynesianism – NYTimes.com.

Bruce Bartlett is described as having held senior policy roles in the Reagan and George H.W. Bush administrations and served on the staffs of Representatives Jack Kemp and Ron Paul.

Personally, I think that the article makes some powerful points about how Keynesian economics was misinterpreted in the post war years. However, it is significant that Bruce Bartlett recognizes the need for Keynesian economic stimulation at the current stage of the economic cycle. He concludes:

 I think Milton Friedman was right that in a sense we are all Keynesians and not Keynesians at the same time. What I think he meant is that no one advocates Keynesian stimulus at all times, but that there are times, like now, when it is desperately needed. At other times we may need to be monetarists, institutionalists or whatever. We should avoid dogmatic attachment to any particular school of economic thought and use proper analysis to figure out the nature of our economic problem at that particular moment and the proper policy to deal with it.

When will policy-makers in the US, the UK and Germany start stimulating their economies to give growth a real chance and to start to unwind the unnecessary unemployment caused by excessive austerity?

Personally, I tend to agree with Bruce Bartlett. What about you?

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Keynes, Keynesians, the Long Run, and Fiscal Policy – NYTimes.com

Here’s another excellent article from Nobel Prize winning, liberal, economist, Paul Krugman, writing in his Op-Ed blog in the New York Times. It’s a “must read” in my view. Check it out!

via Keynes, Keynesians, the Long Run, and Fiscal Policy – NYTimes.com.

Krugman concludes:

The point, then, is not to ignore the long run; it is to recognize that the boom, not the slump, is the time for austerity, and spending cuts right now are disastrous policy. In the long run we are all dead; the point is to avoid killing our economy before its time.

If this argument is so simple, why are the Governments of the US, the UK and Germany holding back from reflating  their economies to give growth a chance?

Paul Krugman, Laureate of the Sveriges Riksban...

Paul Krugman, Laureate of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2008 at a press conference at the Swedish Academy of Science in Stockholm (Photo credit: Wikipedia)

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