Keynesian economics

the price is higher taxes and spending cuts that will benefit international creditors. These austerity measures will have very predictable effects on the Greek economy. Austerity is the new dominant macroeconomic zeitgeist, having supplanted Keynesian economics. Austerity has become the policy of choice anywhere when economies are in trouble. It is also the policy of choice in a segment of the U.S. polity. This capitulation is a mind-blowing turn of event that spits in the face of the Greek…

American Economic Review (1948), The Role of the Monetary Policy by Milton Friedman debates about how monetary policy can affect an economy. In the earlier days the responsibles of the monetary authorites were to stifle any rise in the interest rate, price and output stability and to maintain the gold standard. The monetary authories did not pay much attention to the monetary policies which lead to the The Great Contraction which destroyed the economy. This prove to show that Keynesian was…

My economic autobiography will focus on my economic decisions, and that of the governments, during the time period of 1993-2003. I’ve focused on four of the most important decisions I’ve ever had to make, to quit my job, buy my partner out of our business, close the business and finally the timing of buying my current home. My first major economic decision was in 1993; my employer Ameritech, who at the time was the main provider of telephone service in the Midwest, proposed to end its local…

The comparison between the neoclassical economics advocated by Kenneth Arrow and information economics by George Stigler show the different point of view towards the function of market and the economical mechanism to fix the market failure and improve the economic performance and social welfare. The two points of views differs mainly on whether the government should way in when the economy is facing trouble and need to resolve some market failures that are currently affecting the well-being of…

There can be increased expenditure or increased savings among the consumers. Keynesian economic theory has two economic forces influenced by change in interest rates: the marginal propensity to consume (MPC) and the marginal propensity to save (MPS). They refer to the amount of disposable income consumers tend to spend or save respectively. Higher…

In the following paper I argue that there is one very specific kind of privatisation which, under the right circumstances, does provide indisputable benefits for the Australian public. After providing evidence that the economic arguments in favour of privatisation are weak, I distinguish two distinct types of government enterprises - those operating in a competitive environment and those which are natural monopolies. I argue that there is little contemporary support in Australia for the…

This means the creation of more jobs, and large amounts of foreign currency, continuously arriving in the government budget. Particular attention is paid to the Spanish resort areas of environmental ecology. There are certain restrictions on the movement of road transport, trees are grown at new parks, the beaches and streets of coastal towns are constantly exposed to thoroughly clean. Old resorts in Spain are converted in accordance with the new trends, such as Benidorm and Torremolinos. In…

The greatest economic thinkers and policy makers have always been trying to create an economic system, which will provide “better” aggregate outcomes for the society. In my essay, I will argue that strategic state intervention, under certain circumstances, in the economy may be more beneficial than free trade. “Free trade occurs when there are no barriers to trade, such as taxes on imported goods or bans on imports” (Anderton, 2008, p.613). Although free trade has many benefits, nowadays, almost…

1. We are advisors to the president. The nation is experiencing the following: a) It has a high unemployment which stems from an insufficient use of resources. The issue of unemployment is a big challenge in the world because it affects both the developing, underdeveloped and developed nations. One of the reasons why there is high unemployment is because of the nation’s resources are not comprehensively utilized. To solve the issue of high unemployment level, we offer some policy…

brutal. This brutality and expulsion can take the form of land grabbing, eviction, incarceration, and environmental destruction. The prevailing ill conceived logic concerning growth also creates a radical detachment between environmental cost and economic…