2009-11-07

Random thoughts on Keynesianism

The net effect of Keynesian stimuli is proportional to its relative broadness.

The broader the stimuli, the less growth seen in the short term, the more sustainable it becomes in the long term.

The narrower the stimuli, the more growth seen in the short term, the less sustainable it becomes in the long term.

Eg: Should we spend $30 billion on one company or upon 3000 companies?

Question: Is debt reduction a better choice than production?

(these are random thoughts outlining some of my thinking, not any of my conclusions)

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