Monday, November 23, 2009

Keynesianism explained

Tony Froth, of the Reserve Bank of Australia, explains the logic behind Keynesianism:



Thanks to Gekko

3 comments:

Paul said...

This is absolute classic and we can dream, can't we? (vis-a-vis the finale)

Paul said...

The cost of creating unsustainable boom: world-wide bust, depression if they persist.

The cost of indiscriminate money printing: hyperinflation, wiping out of the middle class.

The look on the face of central bankers when the whole thing collapses: PRICELESS

Jack Maturin said...

Yes, this could finally be Von Mises 'Crack Up Boom', after 40 years off the gold standard.

As with the fall of communism taking way longer than anyone would have predicted, at 70 years, forty years is perhaps longer than Austrians in 1971, such as Ron Paul, would have predicted, but you've got to hand it to these socialists. Once they hold of the bone, they really DO hang onto it until there is nothing left but splinters.

Nice line on PRICELESS, BTW! ;-)

Though we would still have prices in a money-less barter society. It's just that pricing chickens in terms of pickles is a difficult way of running a complex structure of production :-)