Keynesian Revival?
Posted: Tue Feb 24, 2009 10:23 am
The poll I posted last night got me thinking: 
http://www.championshipsubdivision.com/ ... =10&t=3964
Are we at a point where the public has had enough (poll numbers) and we will begin a new Keynesian resurgance over Monetarism?
Assuming most things, inlcuding economic thought, tend to occur in cycles, have we come full circle?
A brief History:
The Keynesian Ascendancy 1941 – 1979 also known as the Golden Age of Capitalism.
Displacement by Monetarism 1979 - 1984 & The era of Pragmatism: 1984 - 2007 I personnally lump these two together as deregulation was a constant theme.
The Keynesian Revival of 2008 - ?
Personally, I believe that we have. I think the political will exists for tighter oversight and regulation on the part of the Federal Government.
Note: I tend to subscribe to the New Keynesian economic school of thought.
http://www.championshipsubdivision.com/ ... =10&t=3964
Are we at a point where the public has had enough (poll numbers) and we will begin a new Keynesian resurgance over Monetarism?
Assuming most things, inlcuding economic thought, tend to occur in cycles, have we come full circle?
A brief History:
The Keynesian Ascendancy 1941 – 1979 also known as the Golden Age of Capitalism.
Displacement by Monetarism 1979 - 1984 & The era of Pragmatism: 1984 - 2007 I personnally lump these two together as deregulation was a constant theme.
The Keynesian Revival of 2008 - ?
Personally, I believe that we have. I think the political will exists for tighter oversight and regulation on the part of the Federal Government.
Note: I tend to subscribe to the New Keynesian economic school of thought.
Wage and price stickiness, and the other market failures present in New Keynesian models, imply that the economy may fail to attain full employment. Therefore, New Keynesians argue that macroeconomic stabilization by the government (using fiscal policy) or by the central bank (using monetary policy) can lead to a more efficient macroeconomic outcome than a laissez faire policy would. However, New Keynesian economics is less optimistic about the benefits of activist policies than traditional Keynesian economics was.