Michael Perelman wrote: > Is Keynes really that clear? His descriptions of the monetary side seem > pretty vague to me. How else were the US Keynesians able to say that > his policy was just government spending?
fiscal policy raises M*V by increasing V. In any event, the key difference between Keynes and pre-Keynesian business cycle theory is that the latter assumed that we're always oscillating around potential output.[*] Keynes, of course, allowed for the economy to be persistently below potential. Keynes is often vague, but not about that. [*] The assumption is also common among so-called "new Keynesians" who see being above and below potential as symmetrical situations. -- Jim Devine / "Nobody told me there'd be days like these / Strange days indeed -- most peculiar, mama." -- JL. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
