What would @AOC @oxfam @Greenpeace @berniesanders @Greens @NZGreens choose?

From http://coyoteblog.com/coyote_blog/2004/12/progressives_di.html

The Keynesian vision of macroeconomic policy

A market economy is subject to fluctuations which need to be corrected, can be corrected, and therefore should be corrected

Franco Modiglani

Milton Friedman’s vision is far more circumspect because of the limits on the information people have and their ability to update that information. His critique has nothing to do with his views on macroeconomics:

The central problem is not designing a highly sensitive [monetary] instrument that offsets instability introduced by other factors [in the economy], but preventing monetary arrangements becoming a primary source of instability…

Keynesians have a host of metaphors in their rhetorical arsenal; one frequently voiced is that a wise government should “lean against the wind” when choosing policy. Friedman jumped on this:

We seldom know which way the economic wind is blowing until several months after the event, yet to be effective, we need to know which way the wind is going to be blowing when the measures we take now will be effective, itself a variable date that may be a half year or a year or two from now. Leaning today against next year’s wind is hardly an easy task in the present state of meteorology

Friedman’s remarks, as even his strong critics admit, strike at the heart of any activist stabilisation policy. By meeting Keynesians on their own theoretical turf and scrutinising their practice, Friedman manages to produce objections that both Keynesians and non-Keynesians must take seriously.

A key part of any response to Friedman rests on the ability of forecasters to do their jobs with tolerable accuracy. After reading the annual reports of the Fed, Milton Friedman noticed the following pattern:

In the years of prosperity, monetary policy is a potent weapon, the skilful handling of which deserves the credit for the favourable course of events; in years of adversity, other forces are the important sources of economic change, monetary policy had little leeway, and only the skilful handling of the exceedingly limited powers available prevented conditions from being even worse

Central banks pay due to the implications of the leads and lags  on monetary policy only as an ex-post facto rationalisation for disappointment.

Milton Friedman on what presidents can do to increase the economic growth rate

First of all, I don’t think the president has a great deal to do with keeping the economy going…

I think presidents have a great deal to do with keeping the economy from growing…

I think the economy is largely independent of the government, and what keeps it going is its own internal development.

However, you can short-circuit that internal development. If you impose very high taxes, and eliminate the incentive to innovate, to improve, to take risks, and do things, you’ll kill the economy. And that’s what’s happened over and over again in other countries around the world.

Economic progress versus environmental quality

When I was in Japan, I was told that in the 1960s, cities and prefectures welcomed polluting industries because of the better paid jobs they offered.

At that time, shipping companies used like to go to Tokyo because the pollution in Tokyo Bay was so bad that it would clean all the barnacles off their ships. That made them sail faster.

Japanese incomes and wages doubled over the course of the 1960s.

In the early 1970s, the LDP stole the environmental policies of their opponents in a really big crack down on pollution because the country could now afforded them. The Japanese voter was now prepared to support stricter pollution standards and environmental controls.

Waikanae Watch

issues of relevance to Waikanae people

Climate Audit

by Steve McIntyre

healthcare-economist.com/

An unbiased look at today's health care issues

Plugging the Gap

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Mostly Economics

This blog covers research work in Economics with focus on India.

Velvet Glove, Iron Fist

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

The NEP-HIS Blog

Discussion and comment on the latest research in business, economic and financial history

Economics in the Rear-View Mirror

Archival Artifacts from the History of Economics

Reason.com

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Green Jihad

Your source that tells the truth about the environmentalist movement's holy war against mankind

Gender Abolitionist

Examining Gender Identity ideology and its impact on Women's Sex based protections. Exploring how this has taken such firm root in Western societies (Cognitive & Regulatory Capture).

200-Proof Liberals

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Family Inequality

by Philip N. Cohen

What Paul Gregory is Writing About

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Kids Prefer Cheese

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Offsetting Behaviour

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

JONATHAN TURLEY

Res ipsa loquitur - The thing itself speaks

single sex spaces

Single sex spaces are a question of consent

Adventures of a Tudor Nerd

Tudor History from the Wars of the Roses to the Death of Elizabeth I

Weapons and Warfare

History and Hardware of Warfare

TannerOnPolicy

Politics and Policy with a Libertarian Twist

Notes On Liberty

Spontaneous thoughts on a humble creed

Map Dragons

Written by map lovers for map lovers

CONVERSABLE ECONOMIST

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Barrie Saunders

Thoughts on public policy and the media

The Victorian Commons

Researching the House of Commons, 1832-1868

Coyote Blog

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

American Enterprise Institute – AEI

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

The History of Parliament

Blogging on parliament, politics and people, from the History of Parliament

Catallaxy Files

Australia's leading libertarian and centre-right blog

Books & Boots

reflections on books and art

Legal History Miscellany

Posts on the History of Law, Crime, and Justice

Sex, Drugs and Economics

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

The Long Run

the EHS blog

Vincent Geloso

Economics, History, Lots of Data and French Stuff

Climatism

Tracking Anthropogenic Climate Alarmism

Science Matters

Reading between the lines, and underneath the hype.

Point of Order

Politics and the economy

%d bloggers like this: