Thursday, February 25, 2010

Keynesian Theory - A Few Comments

Up to this point, I have yet to mention "Keynes" or any derivative thereof. The reason for this is simple - I don't believe that the efforts taken to stimulate the economy are reflective of the theories that Keynes espoused. Instead, they are a type of "bastardized" Keynesian Theory - used by various parties in an attempt to "legitimize" the tremendous amounts of money spent on various stimulus plans.

I've been meaning to write a blog post about this and other related topics. I still intend to write a fuller post. However, what prompted me to write about this now is a very interesting article I ran across in Fortune Magazine. It is a February 5 interview with Allan Meltzer and can be found at this link.

As Meltzer indicates in the interview, Keynesian Theory is not aligned with the stimulus actions we, as a nation, have undertaken.


SPX at 1105.24 as this post is written

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