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Archaea 05-24-2016 03:05 PM

Quote:

Originally Posted by ChinoCoug (Post 321731)
Friedman's views on monetary policy are now consensus too. Will get to this later.

Yes, but he did not agree with Keynesian policy on fiscal issues. And perhaps I am mistaken, but I do not believe he accepted the "multiplier" fantasy.

ChinoCoug 05-24-2016 04:27 PM

Quote:

Originally Posted by Archaea (Post 321734)
Yes, but he did not agree with Keynesian policy on fiscal issues. And perhaps I am mistaken, but I do not believe he accepted the "multiplier" fantasy.

The problem with Keynesian fiscal policy is that you're supposed to increase spending and cut taxes during recessions, and do the reverse during times of plenty. Politicians don't have the willpower to do the latter, resulting in huge deficits.

Unlike politicians, the Fed has the resolve to raise rates when they're supposed to and cut them when they're supposed to.

However, during the Great Recession we already maxed out on monetary policy. Interest rates were at 0%. We had quantitative easing what, three times?

Archaea 05-24-2016 08:52 PM

Quote:

Originally Posted by ChinoCoug (Post 321735)
The problem with Keynesian fiscal policy is that you're supposed to increase spending and cut taxes during recessions, and do the reverse during times of plenty. Politicians don't have the willpower to do the latter, resulting in huge deficits.

Unlike politicians, the Fed has the resolve to raise rates when they're supposed to and cut them when they're supposed to.

However, during the Great Recession we already maxed out on monetary policy. Interest rates were at 0%. We had quantitative easing what, three times?

And Europe introduced negative interest rates, which didn't fare to well.

The Keynesian fiscal philosophy has lots of operational problems. First, the multiplier has never been proven. It is not based on human behavior, which is what Adam Smith premised his predictions on.

The amount and timing of spending is never timely. Government is not a finely tuned machine and as a result the whole concept of Keynesian manipulation of the economy is a fantasy..

Archaea 05-26-2016 07:22 PM

Hillary eviscerating the 2d Amendment through bad Supreme Court appointments is a nightmare I am having.

She has stated Heller was wrongly decided in her infinite wisdom and knowledge.


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