mandag 24. desember 2012

Minsky: a Keynesian Sockpuppet

This is a decent post by a former teaching assistant to Minsky, Eric Falkenstein. He sums up why Keynesianism is discredited:

"Economists did not abandon Keynesianism because they are capitalist dupes, rather, it was inconsistent, generated poor models of economic growth, and it neglected the micro economic factors that make all the difference between a North Korea and South Korea: free markets, property rights, decentralized incentives. A Keynesian thought he could steer the economy via two controls, the budget deficit and the Fed Funds rate, and indeed in the short run these are very powerful tools, but in the longer run, rather unimportant." - Minsky a Keynesian Sockpuppet

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