Sunday, March 29, 2015

Sandwichman — Is the Economic System Self-Adjusting?


Keynes contra Krugman. (Nice Keynes quote you may want to file.)

Econospeak
Is the Economic System Self-Adjusting?
Sandwichman

1 comment:

Ralph Musgrave said...

There are two self-adjusting mechanisms far as I know: Say’s law and the Pigou effect. Neither works very well, so Keynes (and MMTers) are right: we need variable deficits and perhaps the occasional surplus to do the adjusting better.