{"id":44524,"date":"2019-03-16T17:19:29","date_gmt":"2019-03-16T22:19:29","guid":{"rendered":"https:\/\/olduvai.ca\/?p=44524"},"modified":"2019-03-16T17:19:31","modified_gmt":"2019-03-16T22:19:31","slug":"keynes-is-dead-this-is-the-long-run","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=44524","title":{"rendered":"Keynes is Dead; This is the Long Run"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/blog.evergreengavekal.com\/keynes-is-dead-this-is-the-long-run\/\">KEYNES IS DEAD; THIS IS THE LONG RUN\t<\/a><\/h3>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/blog.evergreengavekal.com\/wp-content\/uploads\/2019\/03\/FeaturedImage-1.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><em>\u201cIn the long run, we are all dead.\u201d<\/em><br>\u2013JOHN MAYNARD KEYNES<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">______________________________________________________________________________________________________________<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>INTRODUCTION<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">John Maynard Keynes, an English economist and author, has been held in high esteem for several decades thanks to his groundbreaking work in economics in the early 20th century. The theory he popularized in an attempt to better understand the Great Depression, aptly named Keynesian theory, revolutionized demand-side economic policy at the time.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For those who haven\u2019t studied the riveting subject of macroeconomics since college \u2013 sarcasm, of course, for everyone out there that doesn\u2019t live and breathe the subject like we do \u2013 Keynes advocated for increased government spending and lower taxes to stimulate economy activity, especially during times of economic hardship. Subsequently, long after his death, Keynes\u2019 disciples proposed that optimal economic performance could be achieved through frequent \u201cfine-tuning\u201d by government monetary and fiscal policies (i.e. interest rates, relative to the former, and taxes\/spending in the case of the latter).&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Consequently, like so many well-intentioned policy initiatives meant to cope with emergency conditions, Keynes\u2019 prescription has morphed into constant application even during mild cyclical downturns. Moreover, the other part of his master plan\u2014to run surpluses during good times&#8211;has been almost totally ignored by election-driven politicians (are there any other kind?).&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the case of the global monetary mandarins following the financial crisis of 2007-2008, the slightest market turbulence or economic hiccup has caused them to resort to Keynesian remedies that were once reserved for true crises. As noted in prior EVAs, the net effect is a global addiction to stimulus, especially to ultra-low interest rate policies (ULIPs). But more on that in the next installment of&nbsp;<em>Bubble 3.0<\/em>\u2026&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>KEYNES IS DEAD; THIS IS THE LONG RUN \u201cIn the long run, we are all dead.\u201d\u2013JOHN MAYNARD KEYNES ______________________________________________________________________________________________________________ INTRODUCTION John Maynard Keynes, an English economist and author, has been held in high esteem for several decades thanks to his groundbreaking work in economics in the early 20th century. The theory he popularized in an [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[458,467],"class_list":["post-44524","post","type-post","status-publish","format-standard","hentry","category-economics","tag-john-maynard-keynes","tag-keynesian-economics"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44524","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=44524"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44524\/revisions"}],"predecessor-version":[{"id":44525,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44524\/revisions\/44525"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44524"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44524"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44524"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}