This article is a summary of the views expressed by Robert Higgs in his article Recession and Recovery: Six Fundamental Errors of the Current Orthodoxy. And how the article compares to the approach taken by Gregory Mankiw in his well known textbooks along with Keynes theories as their arguments can contradict themselves for the following … Continue reading Recession & Recovery – Robert Higgs
Having faith in the Keynesian belief intends that government spending helps provide economic stimulus for the economy, in doing so this view can contradict itself when governments revenue exceeds government spending, causing malinvestment if anything. (Higgs, 2009) Additionally, it follows as the government is the largest net borrower then governments themselves are the ones who … Continue reading Money Pumping – What Malinvestments?
National income accounting attempts to measure gross domestic product (GDP). GDP being calculated annually can be considered by the quantity measured per unit of time (flow) where the quantity measured at date and time (stock) would be government debt as current outstanding debt. However, GDP can be overused as a means for measuring and comparing … Continue reading Measuring National Income