Critique On Keynes :: essays research papers

History of Economic ThoughtThe writer begins with an introduction in which it is disk operating systemd that the schools of imagination were contradictory in their theories. What should contribute been answered is how and from what perspective Neo-classical or Keynesian? The main(prenominal) points of her paper are the following "Neo-classicists, such as Friedman, hold that the U.S. failed to provide liquidity to its banks," which caused the great depression if the establishment does not intervene, the frugality would then head towards full employment. Keynesian economists, on the new(prenominal) hand, believe that the government should intervene actively through means of pecuniary and monetary policy to promote full employment and economic yield (with price stability). Moreover, they believe that the cause of the Great Depression was due to the government not intervening as they should have.The writer assumes that the Great Depression could have been resolved by bot h the Keynesian method, or the Neo-classical, however, does not state the cause of it or methodology. There may be no vituperate or right answer, nonetheless, some reason for it should have been drawn this attack would clarify what the Keynesian or Neo-classical remedies are. The writer does not develop the main points throughout the paper. She goes on restating the ideas by saying that Friedman believes that the economy is "self-adjusting and regulating" and that "Keynesian economists credit good monetary and fiscal policy with getting an economy out of recessions and periods of low branch.I did not get a awareness of what side she was advocating, it seems that she may have been neutral. Furthermore, she did not state the two schools of thoughts analysis of th macroeconomy, which led them to think that their methodology was oppose (according to them). In reference to the monetarists (especially Friedman) she did not mention how they advocated steady and consistent growth of money stock.In her conclusion, she stated that "human behavior is complex and a good deal hard to predict. Keynesian ans Neo-classical economists are often trying to get through sense of the nonsensical".