Keynesiasm Is not Popular With Everyone

Keynesiasm is taking a hit in the article Caroline Baum wrote on Bloomberg yesterday, "Obama’s Pyramid Schemes Would Make Keynes Happy". She writes about her belief that government created jobs are temporary jobs that do not add permanent jobs into the economy. Complete reliance on government policies is a Keynesian prescription, and she is not in agreement. Read her short article for more depth of the argument that is about why we use Keynes' theory when there are others.

Monetarism, a Simple Description

Monetarism is an economic theory that is relatively new. It is a theory that sprung up in the 1970's as a new way to fight inflation. It is widely attributed to Milton Friedman who modified Keynesian theory into something different, Monetary theory. There are several popular economic beliefs that can be identified with monetarism. One is the belief that excess money is the definition of inflation.

Austrian School of Economics, a Simple Description

We don't often hear about the Austrian School. More often, the voices of Keynesianism and Monetarism are heard. In today's world of the great recession, it is Keynesian theory that is in charge at the Fed, The Treasury and the President's Council of Economic Advisors. To observe Keynesian theory, we can look to current government policy. Monetarists are the people we hear being critical of Keynesian economic theory or existing policy. There are no voices for Austrian economic theory that are taken seriously. They are viewed as anti-establishment, independent, wrong and non-conforming. I would like to try to document some of what I have learned about the beliefs, and criticisms, of Austrian economics. Despite it’s avoidance of mainstream popularity, there is a well organized school of thought and a small number of practitioners who make a number of points that strike me as important. I see no benefit for allowing their ideas to be ostracized from my understanding of economics.