From: GERALD LEVY (gerald_a_levy@msn.com)
Date: Thu Apr 24 2008 - 14:04:30 EDT
Addendum: It's also very problematic whether Keynesian policies could be effective under these changed circumstances. A huge difference between the US economy today and that in the 1930s is that the former has the additional problem of inflation. To say that the current economy is experiencing "stagflation" is a bit misleading. Maybe we should be describing the situation as "depreflation" or "contracflation" instead. Keynesian polices were designed to promote employment and spending in the case of a contraction and lower inflation in the case of an expansion. But, now you've got the worst of both worlds - which is similar to stagflation, but more like "stagflation on steroids". How - from a Keynesian perspective - does one _simultaneously_ increase employment and demand and yet at the same time lower inflation? In solidarity, Jerry _______________________________________________ ope mailing list ope@lists.csuchico.edu https://lists.csuchico.edu/mailman/listinfo/ope
This archive was generated by hypermail 2.1.5 : Wed Apr 30 2008 - 00:00:18 EDT