As evidenced by the continual drop in M1V as central government fails to adapt to the new normal. Mark Thoma demonstrates an unemployment graph that directly contradicts his claims of the effect of stimulus, the median period of unemployment has gone up since the stimulus, not down. If Mark wants to propose a non-linear model to explain this, then go right ahead. However the best the New Keynesians have come up with is sticky wages, and that does not explain the rise in unemployment duration. Unemployment participation had become worse because the stimulus consumed oil of which we are short.
The information age has reached central government and the Keynesians are trying to force the economy backward in time because they have built up too much government dependent policies over time. The rise n the Tea Party directly contradicts the New keynesian idel, it does not fit and we are not going to consider dictatorship by elites, sorry.
No comments:
Post a Comment