tag:blogger.com,1999:blog-2761684730989137546.post1939595684419876837..comments2024-03-28T07:50:06.102-04:00Comments on Mike Norman Economics: Brad DeLong — Must-Read: David Lipton: The Key to Raising Business Investment: Keep Pushing the Acceleratormike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2761684730989137546.post-64541141888671581032016-08-03T04:56:49.863-04:002016-08-03T04:56:49.863-04:00Well done Brad. As Galbraith put it, “Firms invest...Well done Brad. As Galbraith put it, “Firms invest when they can make money, not when interest rates are low”. In fact I suggest interest rate adjustments are a complete nonsense: whence the assumption that given insufficient demand, that the cause is insufficient investment spending rather than insufficient consumer or government spending? Absolutely no reason for that assumption. <br /><br />If economists had been told in their undergraduate years that deficient demand was always caused by deficient spending on nail varnish, ice-cream and lollipops they’d probably have believed it. And their solution for recessions would be subsidies for nail varnish, ice-cream and lollipops....:-)Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.com