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November 22, 2010

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Ah ! You are not then a proponent of Keynesian economics, Dr. Jarrell?

But, "Is Obama Keynesian?" http://www.youtube.com/watch?v=hjljho0o7EQ

Here's a video clip of Governor Palin speaking on the subject of fiat money/Quantitative Easing. How'd she do? http://tinyurl.com/23owatp

I'm not a proponent of Keynesian economics in large part because Keynesian economics is both incomplete and static -- it is silent on issues that a careful economic analysis could benefit.

Governor Palin did okay. She actually tried to make the point that an increasing money supply will only cause inflation if it out-paces the real productivity of the underlying economy. Beyond that, she didn't really say anything that was blatantly factually incorrect but nonetheless didn't really originate anything important, and did leave the wrong impression on more than one issue. One, the Fed creates money all the time, as well it should. It's necessary, not "bad." Two, rising commodity prices do not cause inflation; it IS inflation.
Three, comparing us to Germany and Japan on the basis of one ratio (namely money supply to GDP) and using that to try to justify a specific policy is rather weak.

Overall, she "did no harm," which is more than I can say about a lot of political figures these days.

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