ECON-102 Lecture Notes - Lecture 4: Capital Structure, Human Behavior, Loanable Funds
22 Apr 2017
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Keynes diagnoses the financial crisis is from optimism and pessimism animal spirits. The solution: keynes control the markets by government spending. Hayek (cid:373)ake the (cid:373)arkets free, do(cid:374)"t ta(cid:373)per (cid:449)ith the(cid:373) do(cid:374)"t (cid:373)ess (cid:449)ith i(cid:374)terest rates. John maynard keynes, wrote the book on modern macro. The man you need when the economy"s off track, [whoa] Have a seat and i"ll school you in one simple lesson. First line, keynes wrote the book on macroeconomics. Money market model (liquidity preference theory) was from keynes. In 1929 there was the stock market crash. We never bounced back critique on classical economics who said don"t tamper with the market it will fix itself. Stick wages wages were stuck (w/p) prices go down real wages go up, real wages were stuck up so companies fired workers. Last line attacking classical economists if youre going to do something do it now. I had a real plan any fool can understand.
