3 ms·
I find it somewhat poetic that Keynes is the author of that often used quote, as the irrationality of our current market is a direct result of the abuse of his
by cloakandswagger 10y ago
I find it somewhat poetic that Keynes is the author of that often used quote, as the irrationality of our current market is a direct result of the abuse of his own theories.
- bwanab 10y agoNot really. Keynes prescribed fiscal stimulus. We are currently engaged in a very large experiment on the limits of monetary stimulus.
- cloakandswagger 10y agoConstant demand side stimulus has been de facto US economic policy since the Great Depression.
- __derek__ 10y agoI'm sure you're referring to his macro ideas, but this is a fun coincidence as I was reading about his Castle-in-the-Air theory of investment[1] last night. [1]: http://finance.wikia.com/wiki/Castle-in-the-Air_Theory http://finance.wikia.com/wiki/Castle-in-the-Air_Theory
- tryitnow 10y agoHow so? Irrationality of markets are a direct result of irrationality of human beings. I doubt things would be terribly different without Keynsian ideas.
- tryitnow 10y agoHow so? Irrationality of markets are a direct result of irrationality of human beings. I doubt things would be terribly different without Keynsian ideas.
- cylinder 10y agoThe market isn't irrational right now. When rates go low, asset prices increase. It's fundamental finance. The irrationality would be regarding the monetary policy, such as QE / ZIRP.