Posts Tagged Boom and Bust Cycle
Another brilliant EconTv video from Keynes and Hayek. This time, the stage is as a Congress House Committee to analyse whether or not the US stimulus package was a good thing after all. Predictably, Keynes argues on the basis of ‘managing’ volatile markets with low information, whilst Hayek argues for more humility, saying that the economic system is complex, and so far better to let individual economic agents decide where, when and how to spend, rather than ‘the few’ in the government to do this job. Fascinating stuff:
OK, I know, at times Economics and Economists get some bad press about their image, their character, their long explanations, their poor predictions .. their long sentences … ahem… But one thing that is not disputed is that the world still puts a lot of store in their advice. And particularly so when it comes to very big economic fluctuations. You will no doubt have seen claim and counter-claim on the benefits and costs of following this policy or that when it comes to ‘fixing’ the world economy after the latest recession.
Two names loom large in that debate: Hayek and Keynes. And now, thanks to the superb script and deft direction of the folks over at Econ Stories, Economics eduction now, literally, raps it to the masses. Watch and learn, folks. Watch and learn …