Bob Murphy on Keynes on liquidity preference.
Chapter 13 is a really great read.
I have always really liked the passage three paragraphs down from the one that Bob quotes too, which gets into the yield curve stuff.
In the spirit of "I'll scratch your back if you scratch mine", people can skip ahead to Chapter 16 to read Keynes accept the basic premise of the elongation of the capital structure in response to adjustments in the interest rate. Granted, he says you can't get much of a macroeconomic theory out of it, but his embrace of the concept has got to be worth something. Also in this spirti I'll re-recommend this paper which I talked about here. It's an empirical test of ABCT which I've only started. I find it very convincing and impressive.
OK... enough of this... back to the blogwars. We've got an economic crisis to bitch about and the legacy of a bunch of dead white guys to fight over.
Thursday, July 7, 2011
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"We've got an economic crisis to bitch about and the legacy of a bunch of dead white guys to fight over."
ReplyDeleteOnce the Empire has triumphed and the few remaining Jedi-libertarian masters are dispersed through the galaxy, you'll pine for those days.
"These are not the Keynesians you're looking for."