Economics - Fiscal Policy

Please be advised: this video was taken from the book Economics by McConnell and Brue.

Category:

Education

Tags:

• Econimics
• Fiscal
• Policy

[pagole123]

@bltnight07 no its not wrong, when your dealing with aggregate demand on the keynesian model, it is assumed that X-M are autonomous functions. therefore monetary and fiscal policy can only seek to influence C I G, therfore you are wrong

[joepeters01]

you're thinking of aggregate demand

[Meltedsnake4]

@bltnight07 That's a different model

[huggiebearfriend]

well i belive that the central bank system is built for failure. when gdp is doing good then you get inflation then when gdp is down low unemployment, then there is really no such thing as deflation only taking m1 to m2, m3. if you ask me we should move to a more controlable system.

[IriaMaiden]

@bltnight07 the first thing this guy is talking about a NATIONAL scale - if he means a closed economy, he obviously excludes imports or exports.

I doubt he got something that basic wrong in all honesty..

[JackR40]

@WONDOCTORJ

A depression is possible under free markets, but unlikely to be caused by non-financial markets. Lack of regulation in financial markets almost just caused a depression. You need to read some proper sources on what communism means though, maybe 'The Communist Manifesto' as a starting point, Marx alone is clearly beyond you at present.

[JackR40]

@BillHicks420

No the great depression was a policy induced phenomenon. The downturn was due to the business cycle but it became a depression due to incorrect monetary and trade policies. You must distinguish between a cycle and a depression

[JackR40]

He is not wrong. C + I + G is not GDP. And X-M can be affected by monetary policy via the interest rate effect. But for the purpose of this explanation its an acceptable simplification. It's like saying Say's law is 'supply creates it's own demand'. Also a gross simplification to the point of being wrong, but it makes the point.

[WONDOCTORJ]

@azimali322 U.C.C.

[azimali322]

@WONDOCTORJ Dude your being ignorant. True capitalism has ups and downs, read ANY economics book.

And that statement on the fact that we are Communists is also overblown. Every country in the world with your interpretation is Communist then because every country in the world pushes money into their economies. Tell me one country that doesn't do that. United States is actually the country that USUALLY pushes the least money into the economy, but with Obama pushing trillions into the economy...

[BillHicks420]

@WONDOCTORJ Wrong, during the 1929 crash, Keynesian economics had not been employed. The market was considered "free" as macroeconomics not yet had been employed as a field.

[WONDOCTORJ]

@BillHicks420 YES, I AM DESPERATE FOR SHEEP TO HEAR THE TRUTH SO I TYPE IN CAPS......CAPITALISM LET THE 1929 CRASH HAPPEN?? NO, REGULATIONS ON CAPITALISM MADE THE CRASH HAPPEN.......YOU ARE BRAINWASHED ......CAPITALISM = FREEDOM...........WAKE UP MR. DOUCHE !