When an economy suffers a recession, some factors of production, such as labor, become unemployed. Keynesians believe that expanding credit and fiat money will bring back full employment. That's not how an economy works.
Tyler Cowen joins Bob to discuss his latest book on who is the Greatest of All Time in Economics.
Econometric models are constructed with the idea that they can be substituted for authentic human action. Not surprisingly, they fail badly.
Advocates of unbacked paper money claim that theirs is the “civilized” choice, as opposed to gold, or what Keynes called “that barbarous relic.” These inflationists, however, are the ones wrecking civilization as we have known it.
Econometric models are constructed with the idea that they can be substituted for authentic human action. Not surprisingly, they fail badly.
Advocates of unbacked paper money claim that theirs is the “civilized” choice, as opposed to gold, or what Keynes called “that barbarous relic.” These inflationists, however, are the ones wrecking civilization as we have known it.
The US economy has deteriorated into little more than a series of asset bubbles driven by the inflationary policies of the central bank.
Keynes denounced monetary gold as "a barbarous relic." In the end, it will be that "barbarous relic" that overthrows the regime of paper currency.
Keynes denounced monetary gold as "a barbarous relic." In the end, it will be that "barbarous relic" that overthrows the regime of paper currency.
The Keynesian prescription for an economic downturn is for government to increase spending to improve so-called aggregate demand. In reality, this is a recipe for worsening the recession.
