Recent economic crisis has made me read and read again several macroeconomic theory, especially the Aggregate Demand and their relevant subject. This has lead me to one prominent economist in the century - I believe so. This economist is John Maynard Keynes.
I am not a big fan of Keynes as I am not also a big fan of Macroeconomics. But, I've just have little reunion with Keynes in very "introductory" ways. If you feel that you need to refresh some macroeconomics with Keynes, Greg Mankiw's article in The New York Times titled "What Would Keynes Have Done?" is an interesting one for you.
To lightened up further your reunion with Keynes, "An open letter to President Roosevelt" that appeared in the New York Times on December 31, 1933 is next to be your delicious desert.
Sunday, November 30, 2008
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4 comments:
Great link Wa.
Even though I still wondering what's behind Mankiw (and other neo-classical economists) so strong distaste with fiscal stimulus.
Why cant he (and others) just say that fiscal stimulus need to be carefully and smartly targeted to reach the highest multiplier effect. But both fiscal and monetary stimulus are needed.
Still scratching my head.
Berly,
Come on, my friend. If you still scratching your head, how about me? Maybe I will trim my hair then...
I believe Mankiw (and other) just playing as opposition to control the policy at the right track. At least I think Mankiw actually support fiscal stimulus since he made several analysis in his blog about this policy. To see it in a good side, it means Mankiw believe it goods and he try to look (read: anticipate) if it may have any leak or possible threat in the future.
Read this one:
http://gregmankiw.blogspot.com/2008/12/fiscal-policy-puzzles.html
It would be great if Mankiw and other conservative/neo-classical economics is playing the devil advocate.
But it seem to be their position all along that hardly change with different circumstances. Tax cut always good at any circumstances.
I like Keynes dictum,"When the facts change, I change my mind. What do you do, sir?"
salam kenal
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