Quotation of the Day…

by Don Boudreaux on September 20, 2014

in Hubris and humility, Intervention, Man of System, Monetary Policy, Religion, Seen and Unseen, State of Macro, Stimulus, The Crisis

… is from page 104 of Roger Koppl’s remarkable 2014 monograph, From Crisis to Confidence: Macroeconomics after the Crash (links added):

Big Players [such as the Fed] and regime uncertainty create and increase the very sort of uncertainty that Keynes described.  If we may call such policies ‘Keynesian’ then we may draw the inference that Keynesian policies tend to create and enhance the irregular ups and downs that Keynes attributed to modern capitalism as such.  In this sense, Keynesian policies tend to create a Keynesian economy.  Those post-Keynesians who argue for discretionary state intervention as a result of certain features of economic behaviour argue for policies that will increase – rather than reduce – the very behaviours they see as the problem.


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