Thursday, December 9, 2010

More Evidence: Go Away Keynes

Here, John Cogan and John Taylor provide still more evidence that massive federal spending financed by money creation (i.e., adding to federal debt) hasn't and won't result in economic growth.

Lots of economists understand why the Keynesian prescription is flawed.  If you want to understand, too, read this.  That's the logic of the thing.

Some people are persuaded by logic; some people are persuaded by data.  Take your pick.  When it comes to federal fiscal policy or monetary policy stimulating the economy, logic and data both say the same thing.  Forget about it.

If we want a growing economy, how to get it is explained here, here, and here.

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