Keynesian lecture on monetary policy

Just listened to an economist from the Kyiv School of Economics tell a large classroom the following (with a straight face):

– The U.S. stimulus was too small.

– Irrational behavior, what Keynes referred to as ‘animal spirits,’ was responsible for the recent economic crash. Bad mortgages are an example of such irrational behavior.

– Financial stability is a public good. [I’m not sure if this was a reference to bank bailouts.]

– The U.S. economy is under regulated.

– Classical capitalism is not capable of dealing with current challenges.

– Government needs to supervise the private sector to prevent excessive behavior and bubbles.

– U.S. needs to overcome culture of non-intervention and introduce new regulatory instruments. The Fed bailing out private companies is one such instruction.

Double Face Palm

6 Comments

  1. Ed K

    Thank you for reporting on these observations. For us to understand better, reporting on their internal definitions, discussions and understandings helps us better comprehend the environment.

    To late now, but it would have been interesting to get the lecturers insite into how corruption effects the equation in Ukraine. Would that person be in favor of doing away with corruption and how would they do that.

    Details, keep getting the details. Write the details down and analysis and evalutate later.

    Ed K

    Reply
  2. Roman

    I had my hopes, as the case against government policy is so much more obvious here, but my hopes have been shattered.

    Reply

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