tag:blogger.com,1999:blog-76118161080218989.post5119835170831597816..comments2017-05-15T12:22:41.585-07:00Comments on Academy of Human Action: The Inflation AddictionMichael Richardshttp://www.blogger.com/profile/09280416746357847160noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-76118161080218989.post-39539060151042029442011-02-28T16:02:43.681-08:002011-02-28T16:02:43.681-08:00The point of the article is that not only did Keyn...The point of the article is that not only did Keynes knew that inflation causes prices to rise, but stated otherwise to gain political favor. Keynes <a href="http://mises.org/daily/5001/Hazlitt-and-Keynes-Opposite-Callings" rel="nofollow">duplicity</a> to obtain political favor is now infecting the field of economics, so I am just showing how this process also affects society as wellMichael Richardshttps://www.blogger.com/profile/09280416746357847160noreply@blogger.comtag:blogger.com,1999:blog-76118161080218989.post-31622746992523473562011-02-21T07:25:33.043-08:002011-02-21T07:25:33.043-08:00I think Keynes did recognize that monetary expansi...I think Keynes did recognize that monetary expansion could cause inflation, because he advocated inflation as a means of tricking workers into accepting lower wages. He believed that wages are less sticky when nominally growing, and so decreasing their real cash balances through inflation was an easier means of establishing labor market equilibrium than through wage cuts.<br /><br />Also, I would argue that Keynes predominately put emphasis on deficit spending, not inflationary spending. Keynes believed that depressions were caused by a lack of sufficient private investment (the fall in aggregate demand), which was caused by a fall in consumption and a rise in savings. Therefore, Keynes supported "socialized investment" as a means of overcoming the fall both in consumption and the lack of sufficient investment to make good those savings.<br /><br />It's important to realize that Keynesian theory has radically changes since The General Theory. Most "Keynesians" generally applied their own world view and accepted only Keynes's points about socialized investments, uncertainty, and price stickiness. That's why I think the Keynesian school is generally so theoretically convoluted.Jonathan Finegold Catalánhttps://www.blogger.com/profile/16710256011291680376noreply@blogger.com