LiberalNut
Member
- Oct 22, 2010
- 741
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Both Reagan and Bush 43 used stimulus to promote economic growth.
But, they didn't act counter-cyclically. They produced debt at all points of the GDP curve! They ignored notions of propensities to consume in favor of "trickle down". They believed the supply side is what needed stimulus, not the demand side. Pretty much the opposite of Keynesianism.
Modern monetarism is an outgrowth of Keynesian economics.
Only because Friedman, after seeing the failure of his model in the United Kingdom during the 80s, wised up and joined the neo-Keynesians. FTR, Friedman is one of my heroes.
Therefore even Alan Greenspan, the mother of all bubblers, was a Keynesian.
Alan is not so easy to pigeonhole. He's more into Galbraith, another of my heroes.
But, they didn't act counter-cyclically. They produced debt at all points of the GDP curve! They ignored notions of propensities to consume in favor of "trickle down". They believed the supply side is what needed stimulus, not the demand side. Pretty much the opposite of Keynesianism.
Modern monetarism is an outgrowth of Keynesian economics.
Only because Friedman, after seeing the failure of his model in the United Kingdom during the 80s, wised up and joined the neo-Keynesians. FTR, Friedman is one of my heroes.
Therefore even Alan Greenspan, the mother of all bubblers, was a Keynesian.
Alan is not so easy to pigeonhole. He's more into Galbraith, another of my heroes.