Quote:
Originally Posted by oompa loompa
Thats not actually where the Keynesian school is different... Not like there is a Says school of economics anyways. More importantly, while Keynes did disagree with Say, its not because he thought the truth was vice-versa. The difference is more subtle than that, and has a lot more to do with disconnects between the supply and demand side, as well (the cornerstone of Keynes famous General Theory) money neutrality. At any rate, the question of 'which comes first, supply or demand' is really an irrelevant chicken and egg question. A more important question is which effects the other more, when, and why ( Of course there is extensive literature on this subject)
|
That's very interesting, and I'd really like to hear more about that. Haven't really covered much about economic history or competing economic ideologies in my classes. All that I know about Keynes is his argument about wages being downward sticky and that the economy is slow to recover to long-run equilibrium.