Home - Index -
News - Krisen 1992 - EMU - Economics - Cataclysm -
Wall Street Bubbles
US Dollar - Subprime - Houseprices
"the Keynesian foundations that Rueff demolished"
This is a glorious moment to be an economist
Now we call for trillion dollar stimulus plans on the basis of little more than citing John Maynard Keynes
Benn Steil, Financial Times, February 5 2009
The writer is director of international economics at the Council on Foreign Relations and co-author of Money, Markets and Sovereignty (Yale University Press)
Bastiat’s fellow Frenchman Jacques Rueff, who in a 1947 journal article attacking The Fallacies of Lord Keynes’s General Theory
But Nobel Prize-winner Paul Krugman, who calls today “The Keynesian Moment”,
justifies such a trillion dollar investment programme on precisely the Keynesian foundations that Rueff demolished
pointed out that governments “have a choice between only two solutions:
to allow the apparatus of production to adapt itself to the structure which, by the movement of prices, the will of the consumers tends to impose upon it,
or to adapt the desires of consumers by authoritative regulation to the structure of the productive apparatus which we do not propose to change”.
– the claim that money “would otherwise be sitting idle”.
When Mr Krugman buys his stimulus bonds, I am curious where the “idle” money will come from.
Keynes offers us the best way to think about the financial crisis
Martin Wolf, Financial Times, December 23 2008