Keynesian vs Austrian Economics: What's the Difference?
Keynes called the older view, that supply creates its own demand, a special case; total demand can fall short and then you get idle workers.
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1.What did Keynes argue in the General Theory about total demand?
Keynes called the older view, that supply creates its own demand, a special case; total demand can fall short and then you get idle workers.
2.What did Keynes mean by animal spirits?
Keynes saw firms acting on a spontaneous urge; when optimism dims, investment shrinks and jobs shrink with it.
3.Which school's text supports a public spending push in a slump?
Keynes wrote that the state should steer part of investment, and a low rate promotes investment.
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Sources (8)
- Keynes, J. M.: The General Theory of Employment, Interest and Money (1936), Kap. 1, 3, 24
- Keynes, J. M.: General Theory (1936), Kap. 12 (Langfristige Erwartung)
- von Mises, L.: Human Action (Mises Institute, Scholar's Edition), Kap. XX, Abschnitt 8, S. 569-570
- Hayek, F. A. von: The Pretence of Knowledge, Nobel-Vortrag 11.12.1974
- Nobel-Komitee: Wirtschaftspreis 1974, Pressemitteilung (Myrdal
- Friedman, M.: The Role of Monetary Policy, American Economic Review 58 (1), 1968, S. 1-17
- Caplan, B.: Why I Am Not an Austrian Economist (George Mason University, spaete 1990er)
- Skidelsky, R.: Keynes v Hayek: The Four Buts (Mont Pelerin Society Special Meeting, 15.-17.01.2020), zitiert Keynes an Hayek, 28.06.1944 (Collected Writings Bd. 27, S. 385-388)
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