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There's an Australian economist called "Steve Keen", who uses mathematics (stuff like dynamic PDEs, not the crap econometricians use) to model this kind of stuf

by wisty 15y ago

There's an Australian economist called "Steve Keen", who uses mathematics (stuff like dynamic PDEs, not the crap econometricians use) to model this kind of stuff. I think he tends to agree with Keynes, in broad terms - austerity measures are a crock, because they come at a time when the government would otherwise be the only bastion of stability. But we didn't think about this when we subjected African (and other third world) economies to the IMF's demands. What is needed is long-term measures. Gradually raising the pension age, gradually cutting pensions, freezing spending, and so on. Also, government reform (i.e. better transparency, whistle-blower protection, ombudsmen and auditors) is needed, not just "cutting costs".

yummyfajitas 15y ago
Long term measures are impossible in government. You cannot bind the actions of future legislators. Legislators will agree to austerity measures which harm the constituents of future legislators, and then future legislators will undo it. The only reliable way of binding the actions of future legislators is to create a politically powerful class of dependents (e.g. old people, government unions) who will fight to protect their cash cow. Unfortunately, that's what got Greece into this mess to begin with.
Evgeny 15y ago
There's an Australian economist called "Steve Keen", who uses mathematics (stuff like dynamic PDEs, not the crap econometricians use) to model this kind of stuff. It is probably worth noting that he's been predicting the Australian Property Bubble to pop any time for quite a while. He already had to walk to Mt. Kosciuszko (highest mountain in Australia, like 2000m or so) because he had lost a bet on a housing prices to another economist, but all his predictions still point out that house price bubble pops any day (I'm subscribed to his blog and I admire the way he uses mathematics btw).

by wisty 15y ago

yummyfajitas 15y ago

Long term measures are impossible in government. You cannot bind the actions of future legislators. Legislators will agree to austerity measures which harm the constituents of future legislators, and then future legislators will undo it. The only reliable way of binding the actions of future legislators is to create a politically powerful class of dependents (e.g. old people, government unions) who will fight to protect their cash cow. Unfortunately, that's what got Greece into this mess to begin with.

Evgeny 15y ago

There's an Australian economist called "Steve Keen", who uses mathematics (stuff like dynamic PDEs, not the crap econometricians use) to model this kind of stuff. It is probably worth noting that he's been predicting the Australian Property Bubble to pop any time for quite a while. He already had to walk to Mt. Kosciuszko (highest mountain in Australia, like 2000m or so) because he had lost a bet on a housing prices to another economist, but all his predictions still point out that house price bubble pops any day (I'm subscribed to his blog and I admire the way he uses mathematics btw).