All Posts Tagged With: "aggregate demand"
And the Slump Goes On
Official economic statistics and the underlying economic reality sometimes differ starkly. Such discrepancies may be almost inevitable when a small group of macroeconomic experts sets the official dates for peaks and troughs of aggregate economic activity. The Business Cycle Dating Committee of the National Bureau of Economic Research (NBER) recently “determined that a trough in [...]
24Feb2011 | Angel Martín Oro | 13 comments | ContinuedMore Income Redistribution Will End the Great Recession?
With increasingly widespread recognition of the failure of Keynesian economic policies, all the Progressives are left with are claims whose acceptance requires a suspension of one’s logical faculties. An excellent example of this is a September 2, 2010, New York Times op-ed by Robert Reich, the Clinton administration secretary of labor and professor of public [...]
24Nov2010 | Ivan Pongracic Jr. | 4 comments | ContinuedThe Return of Keynesianism
Keynesian economics is an account of economywide employment that rather too simply alleges that economic health and growth—and, hence, the number of jobs—declines with decreases in “aggregate demand” and improves with increases in “aggregate demand.” No need to bother with questions about how well individual markets are working; no need to worry that the money supply might be growing too fast and causing individual prices to be out of whack—no! The economy is really much simpler, said Keynes, than those silly classical economists, such as Adam Smith, made it out to be.
21May2009 | Donald J. Boudreaux | 5 comments | ContinuedThe Current Economic Crisis and the Austrian Theory of the Business Cycle
Richard Ebeling is completing his tenure as the president of FEE. This fall he will teach economics at Trinity College in Hartford, Conn. The current financial crisis emerged out of an economic boom that began in 2003 and saw rising stock values, increasing home prices, and high levels of employment and production. The upturn followed [...]
1Jun2008 | Richard M. Ebeling | 4 comments | ContinuedThe Great Depression According to Milton Friedman
The author extends special thanks to Lawrence H. White and Ivan Pongracic, Sr., for their helpful comments. Few events in U.S. history can rival the Great Depression for its impact. The period from 1929 to 1941 saw fundamental changes in the landscape of American politics and economics, including such monumental events as America ‘s going [...]
1Sep2007 | Ivan Pongracic Jr. | 77 comments | ContinuedBest Textbooks for a Free-Market University
“I don’t care who writes a nation’s laws . . . if I can write its economics textbooks.” -Paul A. Samuelson When I majored in economics in the late 1960s and early 1970s, there were precious few textbooks with a strong free-market bent. My introductory course required Paul A. Samuelson’s Economics, a strictly Keynesian work [...]
1Dec1998 | Mark Skousen | 2 comments | ContinuedBest Textbooks for a Free-Market University
Mark Skousen is an economist at Rollins College, Department of Economics, Winter Park, Florida 32789, a Forbes columnist, and editor of Forecasts & Strategies. He is also the author of Economics on Trial (Irwin, 1993), a review of the top ten textbooks in economics. He is currently working on his own textbook, Economic Logic. “I [...]
1Dec1997 | Mark Skousen | 0 comments | ContinuedUnderstanding Say’s Law of Markets
One of the problems in the world of ideas, particularly in the social sciences, is that the insight behind old ideas can get lost as new ideas crowd the intellectual landscape. Often, the historian of ideas has the thankless task of reminding his colleagues that what they think some long-dead writer said is not, in [...]
1Jan1997 | Steven Horwitz | 38 comments | ContinuedNew Keynesians Finally Reject Keynes’s General Theory
“When people attempt to save more, the actual result may be only a lower level of output . . .” —Paul A. Samuelson[1] “Higher saving leads to faster growth . . .” —N. Gregory Mankiw[2] The two quotations above dramatically demonstrate the stark contrast between the “old” Keynesians and the “new.” Samuelson and the old-style [...]
1Sep1996 | Mark Skousen | 1 comment | ContinuedGood News: Textbook Macro Model Rejected!
Finally, a major academic economist has repudiated the dangerously flawed macro model used in all standard textbooks—the so-called Aggregate Supply (AS) and Aggregate Demand (AD) curves. David Colander, well-respected economics professor and author, has written a devastating critique of AS-AD macroeconomics in the latest issue of the prestigious Journal of Economic Perspectives, an official journal of the American Economic Association. What is more remarkable is that he considers himself a Keynesian “and proud of it,” yet he is in the forefront of revamping the way economics is taught.[2]
1Jan1996 | Mark Skousen | 1 comment | Continued-
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