Again we have a Govt. that purports to want to support growth, but also is considering cutting expenditure on public services, which will likely compound the BoE/MPC engineered (near) recession targeting inflation.
This reflects rising bond yields (caused by falling bond prices stoked by concerns about, you guessed it, future growth; a falling price for an issued bond raises its yield, but also makes future bond issuance more expensive).
a one word policy answer: KEYNES!
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h4890
In response to this post@ChrisMayLA6 Keynes? Aren't that old mans theories completely disproven? ;)
I hear Milei is doing wonders in Argentina by following the libertarian approach of Mises! :)
@h4890
Hmmm.... depends on whether you think the period 1945 - 1965 was a success economically or not... if yes, that was a practical result of Keynes-inspired policy making
by Emeritus Prof Christopher May ;
@ChrisMayLA6 Three arguments against Keynes are:
1. Inflationary Bias
2. Crowding Out Effect
3. Rational Expectations and Policy Ineffectiveness
These three critiques highlight fundamental challenges within Keynesian economic theory: its tendency toward inflation during stimulus efforts, the crowding out of private investment due to government borrowing, and the limitations imposed by rational expectations on fiscal policy effectiveness.
by h4890 ;
Mentions: @ChrisMayLA6@zirk.us
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