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To: expatpat
The copybook headings are Laws of Life that are violated at great risk.

Very great risk, indeed. As, for example, Keynesian Harvest.

William Flax

45 posted on 08/15/2011 1:25:21 PM PDT by Ohioan
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To: Ohioan
Keynes didn't believe that government stimulus would work if the money multiplier was less than 2. For example:
Under conditions such as the Great Depression, Keynes argued that this approach would be relatively ineffective compared to fiscal policy. But, during more "normal" times, monetary expansion can stimulate the economy. -- Wikipedia.

During our own Great Recession, the multiplier has been below 1.0! And still declining....

47 posted on 08/15/2011 1:42:27 PM PDT by expatpat
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