Originally posted by Reid:
Any text that discusses the business cycle will mention Keynes, for the same reason that any text that discusses market failures will mention Marx. It doesn't mean the author entertains Keynesian or Marxian opinions, it just means that their model of the problem (indeed, their recognition of the problem) has dominated the field.Okay, it's just the Wikipedia mentioned Keynes.
For example, the difference between Keynesians and monetarists is that the former believe you need a combination of fiscal stimulus and monetary policy in order to dampen the business cycle, while monetarists think fiscal stimulus causes greater economic problems, and you should stick with rules-based monetary policies. But the fact that both of them are talking about the business cycle at all means Keynesianism has already won the discussion.
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The spiral isn't necessarily (just) demand side! It can also be perverse incentives on the capital side.What I seem to get is that, economies can be locked into a cycle where there's not enough demand to maintain growth.
I'm not going to spoil this for you. It's going to be much more fun when you realize this on your own.
Two clues:
- US stocks do not trade on the fundamentals.
- What does it mean when the "stock market" goes up?
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Wikipedia mentions a couple potential causes for lung cancer. Which do you find particularly convincing?Though the Wikipedia mentions a couple potential causes. Which do you find particularly convincing?