Friday, October 28, 2011

Four Reasons Keynesians Keep Getting It Wrong

Allan H. Meltzer: Four Reasons Keynesians Keep Getting It Wrong - WSJ.com
Why is the economic response to increased government spending so different from the response predicted by Keynesian models?
What is missing from the models that makes their forecasts so inaccurate?
Those should be the questions asked by both proponents and opponents of more government spending.
Allow me to suggest four major omissions from Keynesian models:

No comments: