Monday, December 1, 2008

What would Keynes have done?

I try to avoid the financial pages--far too depressing. But I am trying to wrap my head around this financial disaster in order to prepare myself for the worst. I found this article from the NYT quite interesting.

The situation reverses, Keynesian theory says, only when some event or policy increases aggregate demand. The problem right now is that it is hard to see where that demand might come from.--N. Gregory Mankiw

“In the long run we are all dead,” --Keynes

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