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When economists throw Keynes in the bin where he belongs and accept that inflation is not because of lack of spending, but because of an ever expanding money su
by sph 3y ago
When economists throw Keynes in the bin where he belongs and accept that inflation is not because of lack of spending, but because of an ever expanding money supply.
Not gonna happen anytime soon, governments love Keynesian economics.
- api 3y agoKeynes gets the blame for policies he never would have supported. He advocated counter cyclic spending: deficits during recessions, surpluses during booms. That and the idea of monetary velocity are his biggest insights. What we do isn’t Keynesian. We run deficits in recessions and deficits in booms and make them bigger and bigger. This has consistently happened under both major political parties (yes including Trump) since the 1980s.