Mav put this up a while back. In a quarter, this video has gotten a million views. AAA, you might be right, a new era might be on the horizon. In response to the new debt deal. <iframe width="560" height="349" src="http://www.youtube.com/embed/GTQnarzmTOc" frameborder="0" allowfullscreen></iframe>
Hayek's theory is classic Ivory Tower fantasy, and no (meaningful) country has actually followed a Keynesian policy. Before there's a fight, shouldn't there actually be someone in the ring?
Im' sure no one follows economic theory to the letter. Unlike physics, economics is not an experimental science because no one can conduct an experiment in controlled conditions to see what works and what doesn't. Some would go further and argue that for this reason economics is not a science... because any theories are totally unverifiable. However, the video is about one narrow aspect of both theories... What stimulates economy better? 1) Increase in government spending and support for bankrupt companies, or 2) Deregulation and letting failed businesses die to free space for start-ups. I am pretty sure indefinitely supporting businesses whose economic model has died out isn't part of classic Keynesian though it is discussed in the video....
Exactly right. This is why economics is called a "soft science", not hard science. Thanks RCG for posting again. I love those videos.