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  • John Maynard Keynes

    How to Get the Most from Your Dollar in a Slow Economy

    It’s an age-old problem in Washington, D.C.: Every few years or so there’s an economic slowdown, a recession, a bad jobs report, a slow recovery or something similar, and the hue and cry from editorial pages to the Oval Office is directed at Congress: “Don’t just stand there; do something!” … More

    Is the U.S. Economy in a “Liquidity Trap”?

    Popular economics suggests that economic activity results from a circular flow of money in the economy: One person’s spending is a second person’s income, and the second person’s spending is a third person’s income, and so on. According to this theory, recessions occur because psychological factors cause individuals to increase … More

    Keynesians Should Listen to Keynes

    As we’ve argued countless times, government attempts to stimulate the economy create uncertainty that often paralyzes business decisions. Don’t take our word, though. In a letter to President Roosevelt during the Great Depression, the father of Keynesianism himself, John Maynard Keynes, wrote the following: You are engaged on a double … More

    Podcast: Keynes vs. Hayek

    Make sure to listen to a recent radio interview with Nicholas Wapshott, author of the new book, “Keynes Hayek: The Clash That Defined Modern Economics.” What was the relationship between Keynes and Hayek really like? Why did Keynesian thought dominate from WWII until 1980? Why did Hayekian thought dominate from 1980 … More

    Does Supply Create Demand?

    Which comes first: supply or demand? This question has serious policy implications, especially as President Barack Obama proposes $447 billion in additional stimulus spending in order to try to spur job growth in America. “Demand-siders,” also known as Keynesians (after influential economist John Maynard Keynes), insist that short-run economic fluctuations … More