RE: [OPE] Interview with Hillel Ticktin, Financial turmoil heralds return to Keynesianism

Date: Thu Apr 24 2008 - 14:04:30 EDT

It's also very problematic whether Keynesian policies could be 
effective under these changed circumstances.  A huge 
difference between the US economy today and that in the 
1930s is that the former has the additional problem of 
To say that the current economy is experiencing "stagflation" 
is a bit misleading. Maybe we should be describing the 
situation as "depreflation" or "contracflation" instead.
Keynesian polices were designed to promote employment
and spending in the case of a contraction and lower inflation 
in the case of an expansion. But, now you've got the worst
of both worlds - which is similar to stagflation, but more
like "stagflation on steroids".   How - from a Keynesian 
perspective - does one _simultaneously_ increase employment
and demand and yet at the same time lower inflation?
In solidarity, Jerry

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