Sunday, January 16, 2011

Keynes thinks we always go back to the original equilibium

We take as given the existing skill and quantity of available labour, the existing quality and quantity of available equipment, the existing technique….
A Keynes quote found on Don's posting where he discusses criticism's of Keynes.

If you imposed this condition on 1930s Europe then you get 1942 Europe because of the need to quantize.  I don't blame Keynes for WW2, I blame the need to quantize even under impossible situations.  I do blame Keynes for his part in hubris that helped cause WW2

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