An Honest Question to Any Serious Keynesian
Posted in Macroeconomics on Mar 14th, 2011
In a response to this Russ Roberts post, Tim Worstall argues: “My eleven year-old understands that spending on rebuilding means less spending on something else.” Now introduce savings into your 11 year old’s model. Either that people will do less saving because they are rebuilding or that they will draw down their savings to rebuild. […]
