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“Too much borrowing” “too little spending” versus productive investment is the problem with Keynesian economics caused over supply / under pricing of money. Key
by anarchop 7y ago
“Too much borrowing” “too little spending” versus productive investment is the problem with Keynesian economics caused over supply / under pricing of money. Keynes said debt doesn’t matter because it’s someone else’s asset and it self-amortises: Yes, but it creates mal-investment and uneven inflation in favour of those with access to credit e.g. giant financial asset bubbles of 20/21st centuries.
- pas 7y agoFYI, Keynes is still of course important and influential, but ... it's also very outdated if you want to use models to gain policy insight: https://en.wikipedia.org/wiki/New_Keynesian_economics#2000s https://en.wikipedia.org/wiki/New_Keynesian_economics#2000s