Comments on: Did the midterms kill Keynesianism? http://blogs.reuters.com/felix-salmon/2010/11/10/did-the-midterms-kill-keynesianism/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: killben http://blogs.reuters.com/felix-salmon/2010/11/10/did-the-midterms-kill-keynesianism/comment-page-1/#comment-20644 Fri, 12 Nov 2010 08:51:46 +0000 http://blogs.reuters.com/felix-salmon/?p=6078#comment-20644 “.. even the routine management of the economy by the Fed could be affected.”

You should not be saying “routine management by Fed could be affected” … You should be saying “routine mismanagement” by the Fed could be affected. I would say it is a good thing for the world. The management of the economy by Ben Bernanke (and Alan Greenspan) during the building up of the crisis leaves a lot to be desired .. You just need to read Bernanke quotes at various instances prior to the crisis to know how he managed the economy. That he is still having his job is courtesy the Congress.

Fed needs to be ended if you want sound management of the economy!

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By: Greycap http://blogs.reuters.com/felix-salmon/2010/11/10/did-the-midterms-kill-keynesianism/comment-page-1/#comment-20595 Wed, 10 Nov 2010 23:50:53 +0000 http://blogs.reuters.com/felix-salmon/?p=6078#comment-20595 This conflates two separate ideas. Counter-cyclical policies are an act of humanity, a safety net for those who are vulnerable or unlucky. What about Keynesianism?

There does not exist a philosophy or way of life called “Keynesianism”, but Keynes did propose a narrow, technical solution to a narrow, technical problem. Keynes thought that if the economy faltered because of a negative demand shock, then it could be restarted by increasing demand, in the same way that if your car has a flat tire, he might have thought that the fix is to change the tire. It follows that if your car does not have a flat tire, changing it won’t help.

The point is that since the most efficient way to boost demand is to give money to those who have the least, “Keynesianism” can look a lot like countercyclicality. But not all countercyclicality is Keynsian.

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