Now, Some Nasty Words about Lord Keynes

I found myself in the peculiar position if defending the Keynes multiplier last week. On this very blog. It was not any fun but I felt that it needed to be done.

To get my mojo back, I pass along a Mankiw post and a recommendation that you click through and read Scott Sumner's original post. Sumner details an incident when a young JMK was caught in a quick currency flip and leaned on friends and family.

Translation, without help from his rich daddy and rich friends, this cocky, arrogant, smart-aleck would have fallen on his face, ended up digging ditches somewhere and we would never have heard of him. But he did have a rich daddy, who bailed him out...

Interstin'... While on topic, click over to scrivener.net to read "An odd thing about Keynesian deficit spending:"

"Despite the fact that the economics of deficit finance began with the Keynesian Revolution, it has been conclusively established by Kregel (1985) that Keynes himself did not ever directly recommend government deficits as a tool of stabilization policy. Keynes played a conservative political hand and viewed budget deficits with a 'clearly enunciated lack of enthusiasm'."

Economics and Markets Posted by John Kranz at June 29, 2009 11:41 AM