The story includes this gem:
There is a doctor in the house, and his prescriptions are more relevant than ever. True, he’s been dead since 1946. But even in the past tense, the British economist, investor, and civil servant John Maynard Keynes has more to teach us about how to save the global economy than an army of modern Ph.D.s equipped with models of dynamic stochastic general equilibrium. The symptoms of the Great Depression that he correctly diagnosed are back, though fortunately on a smaller scale: chronic unemployment, deflation, currency wars, and beggar-thy-neighbor economic policies.
What great timing for the new LibertyClassroom course: John Maynard Keynes: His System and Its Fallacies.
The course is taught by
G.P. Manish, a professor of economics in the Sorrell College of Business at Troy University and a member of the University’s Manuel H. Johnson Center of Political Economy.
The course lessons are:
A Few Fundamental Economic Concepts
The Production Structure and the Order of Goods
The Calculation of GDP: The Income Method (Part 1)
The Calculation of GDP: The Income Method (Part 2)
The Calculation of GDP: The Expenditure and Output Methods
Inventories and the Measurement of GDP
The Conceptual Foundations of GDP Measurement
The Calculation of GDP with Durable Capital Goods
Depreciation and GDP
Nominal and Real GDP
The Circular Flow of Income and Expenditure: An Introduction
The Circular Flow with Durable Capital Goods
The Circular Flow with Inventories
Equilibrium and Disequilibrium Levels of GDP: An Introduction
Equilibrium and Disequilibrium Levels of GDP: Further Explorations
Price Rigidity, Price Flexibility and Equilibrium GDP
Keynes’ Theory of Consumption Expenditure: The Fundamental Principles
Keynes’ Theory of Consumption Expenditure: Implications for Equilibrium GDP
Consumption Expenditure and Equilibrium GDP with Durable Capital Goods
The Determinants of Investment Expenditure (Part 1)
The Determinants of Investment Expenditure (Part 2)
Aggregate Investment Expenditure and the Rate of Interest
Expectations and Investment Expenditure
The Demand for Money: An Introduction
The Speculative Demand for Money
Interest Rate Determination and the Level of Employment
Unemployment in the Keynesian System
The Keynesian Multiplier and Monetary and Fiscal Stimulus
Consumption Expenditure and Savings in the Keynesian System
The Role of Time in Production and the Maintenance of Capital: The Austrian Perspective
The Keynesian Denigration of Savings: A Critique (Part 1)
The Keynesian Denigration of Savings: A Critique (Part 2)
Sign up for Tom Wood's Liberty Classroom here.
Propping up asset prices is not my idea of a successful intervention. If the goal is to save the bankers from their own greed and stupidity, it's been a hit. On the other hand, QE has destroyed the capital markets, spread moral hazards everywhere one looks, and largely wiped out the middle class. This is a success story?
ReplyDeleteOh, and the real verdict isn't passed until the Fed unwinds its gigantic balance sheet and normalizes interest rates. Does any sane person think that Janet Yellen is going to pull a Volcker with a national debt at $18 trillion? Me neither.
Can't... Stop... Laughing...
ReplyDeleteOK, on a more serious note: The ONLY reason his theories are popular is because they empower the state. PERIOD.
One thing that is so frustrating about economics is the recycling of ideas that were long ago discredited.
ReplyDeleteI believe Robert had this cartoon on his site not long ago.
http://www.zerohedge.com/news/friday-humor-keynesianism-kretins
The Big Lie
ReplyDeleteHas QE worked? If you look at the stock and bond markets it’s been a smashing success. But the real economy? By the Government’s own rigged number – the U6 sub-report in the monthly BLS employment report – the unemployment rate is still over 12%. Furthermore, the labor force participation rate – the percent of the population that is part of the workforce in this country – is at a low not seen since the late 1970′s, when women largely did not work. In fact, this metric has dropped continuously since 2000: LFPR LINK. How about real household income? That has been declining almost continuously since 1998: Real Household Income LINK. How about the home ownership rate? It’s been dropping since 2004 and is now at the same level that it was in in 1994 and 1983: LINK.
These are all indicators that QE has failed – miserably. The price of gold is the biggest lie of them all. The Government has no choice but to try and exert downward pressure on the price of gold because if the price of gold were allowed to trade freely, it would expose every other big lie.
A poll released 2 days ago by ABC showed that the nearly 80% of the country thinks the economy is on the wrong track.
If the economy is fine and QE worked, like we’ve been told by Yellen and Obama, how come 80% of the population believes the economy stinks?
A good friend of mine – a hedge fund consultant in NYC – told me that, in general, the mood on Wall St. is one of “walking around on eggshells.” He said there’s a lot of layoffs going on and the only people making money are the upper level bankers. He said everyone knows that Wall St. banks are corrupt to the core.
http://investmentresearchdynamics.com/the-big-lie-2/#comments