Re:2020 had some significant silver linings
by notahacker on Friday December 25, 2020 @02:15PM
(#25538366)
Your quotations are actually in violent agreement with the poster you're responding to.
The accelerationist Phillips curve and various types of rational expectations based microfounded models you reference are, for better and for worse, the newer 'other models'.
Arguments advanced upthread that Keynes (and recent events) implies that the government could eliminate all poverty and unemployment through continuous money printing without consequence, or 1960s Keynesian arguments the government could at any point trade slightly higher inflation for lower unemployment (which were influenced by but not made by Keynes) were the casualty.
One thing both the original Keynes and modern mainstream interpretations have in common is they viewed large deficits as a tool for fixing the imbalances of a recession rather than the natural way of paying for things.
The accelerationist Phillips curve and various types of rational expectations based microfounded models you reference are, for better and for worse, the newer 'other models'.
Arguments advanced upthread that Keynes (and recent events) implies that the government could eliminate all poverty and unemployment through continuous money printing without consequence, or 1960s Keynesian arguments the government could at any point trade slightly higher inflation for lower unemployment (which were influenced by but not made by Keynes) were the casualty.
One thing both the original Keynes and modern mainstream interpretations have in common is they viewed large deficits as a tool for fixing the imbalances of a recession rather than the natural way of paying for things.