Tim Taylor talks about Keynes’ view on secular stagnation, investment and the government’s role in managing aggregate demand:
Keynes begins by stating: “It seems to be agreed to-day that the maintenance of a satisfactory level of employment depends on keeping total expenditure (consumption plus investment) at the optimum figure … The problem of maintaining full employment is, therefore, the problem of ensuring that the scale of investment should be equal to the saving which may be expected to emerge ….”
Writing in 1943, Keynes then predicted “three phases” that would appear after the end of World War II. In the first phase after the war, there would be an investment boom, which in his view the government should act to tamp down:
The government should also handle phases two and three as well.
Final exam question to any and all Eco 101 students: what is entirely missing from this analysis of how to “manage” or “balance” the supply and demand of savings and investment funds? It’s almost too shocking to realize it.
What is the “optimum figure”?
788482 630007Hey, you used to write great, but the last several posts have been kinda boringK I miss your tremendous writings. Past few posts are just a bit out of track! come on! 780788
Thanks for sharing. I read many of your blog posts, cool, your blog is very good. https://www.binance.com/en-IN/register?ref=UM6SMJM3
906483 278566Hey there, Can I copy this post image and implement it on my private internet log? 135592
757743 204378Thank you for your really excellent details and feedback from you. san jose used car 999803
259583 908583Id have to check with you here. Which is not something I typically do! I enjoy reading a post that will make individuals feel. Also, thanks for allowing me to comment! 626580
I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article.
954030 799296Greatest fighter toasts ought to entertain and supply prize on your couples. Initially audio system next to obnoxious crowd would be wise to comprehend 1 particular gold colored strategy as to public speaking, which is private interests self. greatest man jokes 430425
780857 631700Hi, you used to write exceptional articles, but the last several posts have been kinda boring I miss your super writing. Past several posts are just a bit out of track! 619775
648769 750617After study a few with the content for your internet site now, i genuinely as if your technique of blogging. I bookmarked it to my bookmark internet site list and are checking back soon. Pls have a look at my website too and told me should you agree. 302174
197447 87934Hmm is anyone else experiencing difficulties with the images on this weblog loading? Im trying to uncover out if its a dilemma on my end or if its the weblog. Any responses would be greatly appreciated. 847597
618377 532565I conceive this internet internet site has got some extremely superb information for everybody : D. 957225
678688 287577Keep up the great paintings! 480245