Scott Sumner wrote a post that the Keynesian model could not explain the recession we were in recently. Although I fully agree with Sumner, I intend to emphasize a few points. Let’s first look at this graph showing PCE and disposable income: The Keynesian models we have do not show that NGDP will drop 33% […]
https://www.themoneymischief.com/this-is-not-our-grandfathers-recession/
Many experts seem to have mixed feelings about AIT. While some experts are sure that AIT will be disastrous, pro-free market economists tend to view the situation as a rejection of Keynesian Phillips Curve models. The paragraph that caught my attention in Powell’s speech was this: “Our revised statement says that our policy decision will […]
https://www.themoneymischief.com/the-feds-new-strategy-tiny-steps-forward/
