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View Full Version : the great kensyian experiment



wardd
03-14-2011, 08:26 AM
we may be about to witness one in japan

TomF
03-14-2011, 08:37 AM
Nah. As ever, we may experience half of a Keynsian experiment, sold as the whole thing. We'll see the spending half. Nobody ever sufficiently taxes and restrains spending in good times to refill the bank accounts - but it's rather crucial to Keynes' model.

Keynsian economics ... brings to mind Gandhi's quip when asked what he thought of Western Civilization. "I think it would be a good idea."

Gerarddm
03-14-2011, 08:45 AM
They tried it during their Lost Decade in the 90's. Lots of pump priming didn't get them far.

On the other hand, I think TARP, etc. really did ameliorate the depths of the current recession.

Japan's economy is really going to go through the wringer, especially if the nuke situation gets out of hand. What effect that will have on the world's economy is anybody's guess.

McMike
03-14-2011, 08:49 AM
The world economy will benefit because of the spending and the importing that Japan will have to do to fix things.

McMike
03-14-2011, 08:55 AM
This might be a good time to pay back some of the $750 Billion in debt we owe them.

wardd
03-14-2011, 08:59 AM
another advantage is the renewal of industrial base in japan

an example would be during ww2 we built a new industrial base and after the war ours was the newest and most modern in the world which helped give us a step up

C. Ross
03-14-2011, 10:05 PM
Japan is probably the most definitive proof of the failure of Keynesian stimulus. I don't know what a kensyian experiment is, but I'll bet it's cool!