tag:blogger.com,1999:blog-25740524.post8685433407347920837..comments2024-03-11T13:16:19.098-04:00Comments on Ad Orientem: Europe Is Turning Its Back on KeynesUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-25740524.post-22694258061959918672010-10-22T13:15:35.161-04:002010-10-22T13:15:35.161-04:00I think that Peter Dorman's response puts it v...I think that <a href="http://econospeak.blogspot.com/2010/10/denial-on-two-fronts-climate-and-keynes.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+espeak+%28EconoSpeak%29" rel="nofollow">Peter Dorman's</a> response puts it very well: "[T]here are accounting identities that define reality for all economies, whatever their political leaders may want to believe. The one that matters right now is that the change in net private debt plus the change in public debt plus the surplus on the current account must sum to zero. Austerians who are keen to reduce fiscal deficits must believe that this will be counterbalanced by either less deficit reduction by the private sector or by a big increase in net exports by everyone, all at once (in our trade with Mars, I guess). In other words, holding the trade balance constant, you can’t get net debt reduction in one part of the economy (banks and households) without permitting more debt somewhere else (government). This isn’t about Keynes, it’s about the iron grip of arithmetic on the realm of the possible."gdelassuhttps://www.blogger.com/profile/11107851777800250317noreply@blogger.comtag:blogger.com,1999:blog-25740524.post-36869856680314233652010-10-20T23:31:53.659-04:002010-10-20T23:31:53.659-04:00Heh, heh.
1929 redux- this time with the right sc...Heh, heh.<br /><br />1929 redux- this time with the right scenario- hands rubbing gleefully.Anonymousnoreply@blogger.com