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?
Policy uncertainty is a set of economic risk amid an uncertain future surrounding a government policy. Such periods of policy uncertainty and of which are esteemed as the prosperous ones are during the U.S. history of Roosevelt’s first term as president and during Lyndon B. Jonson’s first years as president. (Higgs, 2009) “In these periods, … Continue reading Regime & Policy Uncertainty