Reaction of keynes and friesman - Assignment Example

Comments (0) Cite this document
Economist Milton Friedman included a hypothesis of price and their fluctuations. Friedman centered his hypothesis on the notion of the innate state of joblessness and the constraints of public policy in steadying an economy during its…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92% of users find it useful
Reaction of keynes and friesman
Read TextPreview

Extract of sample "Reaction of keynes and friesman"

Reaction of Keynes and Friedman I am in favor of Friedman’s position. Economist Milton Friedman included a hypothesis of price and their fluctuations. Friedman centered his hypothesis on the notion of the innate state of joblessness and the constraints of public policy in steadying an economy during its extensive growth trend (Conerly 2012). I think identifying these constraints prevents the triggering of spiraling and negative inflation. In contrast, John Maynar Keynes’ position is increased consumption and demand to stabilizing the economy. Keynes centered his position on the hypothesis of preferring sufficient liquidity for short-run rates of interest. I think this solution is only short term as Keynes seldom considers the measures and approaches other developed countries would take to curb the effect of inflation in the United States on their markets and economies (Conerly 2012).
Keynes’ position relies on jobs, interest rates, and liquidity. When an economic turmoil exacerbates, creating jobs and lowering interest rates cannot prevent a full-blown depression. Lowering interest rates to attract foreign investment can only go as low as 0%, which was the case in the United States in mid-2009 (Conerly 2012). From there, the Keynesian approach proves ineffective. On the other hand, Friedman’s position entails stabilizing the purchasing power of the private sector and collective households across the country. I agree with Friedman that the private sector plays a bigger role in stabilizing an economy than government policy during an economic crisis. In addition, the government is often unreliable when the interests of businesses are not in line with those of the government (Conerly 2012).
Works Cited
Conerly, Bill. Keynes vs. Friedman at the Fed. 2012. Forbes. Web. 11 Apr. 2014. Read More
Cite this document
  • APA
  • MLA
(“Reaction of keynes and friesman Assignment Example | Topics and Well Written Essays - 250 words”, n.d.)
Reaction of keynes and friesman Assignment Example | Topics and Well Written Essays - 250 words. Retrieved from
(Reaction of Keynes and Friesman Assignment Example | Topics and Well Written Essays - 250 Words)
Reaction of Keynes and Friesman Assignment Example | Topics and Well Written Essays - 250 Words.
“Reaction of Keynes and Friesman Assignment Example | Topics and Well Written Essays - 250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Reaction of keynes and friesman


...?Reaction Paper on David Cole Interviews Dr. Franciszek Piper David Cole Interviews about Auschwitz and its gas chambers are quite informative. According to my perception, the gas chambers have holes that are indicative of the fact that these holes were employed for discharging the gas Zyklon B from outside. Ceilings of the gas chambers were used for discharging the gas inside the chambers. After World War II, changes were made, as the gas chambers are not in its original form. They are reconstructed. They are not fully representing the extremity of their homicide capability, The doors at the time of killing were made airtight while after World War II, there were new doors placed, which were not airtight. In my opinion, the number...
1 Pages(250 words)Essay

John Maynard Keynes

... John Maynard Keynes’ Aggregate Expenditure Model The aggregate expenditure model of John Maynard Keynes concentrates on the correlation between aggregate expenditure and income. Keynes applied the income-expenditure approach to explain that real GDP’s equilibrium level may not signify real GDP’s normal level (Tucker 2008). In the income-expenditure framework, real GDP’s equilibrium level is real GDP’s level that is in agreement with the existing aggregate expenditure level (Tucker 2008). *picture taken from Tucker (2008, p. 224) The above diagram is the income-expenditure model of real GDP’s equilibrium formulated by Keynes. If the existing aggregate expenditure level is not adequate to acquire the whole supplied real GDP, output... ). The...
2 Pages(500 words)Essay

Facial landmarking (mapping) on the FBI facial catalogue

15 Pages(3750 words)Literature review

John M. Keynes

...? John Maynard Keynes: The Relevance of His Economic Theories Details: al Affiliation: Submission John Maynard Keynes: The Relevance of His Economic Theories John Maynard Keynes, a man of towering intellect with a capability of moving an entire generation towards an economic thought, was, without a doubt, a gravitating influential figure whose efforts have, though not entirely, enabled a democratic, flourishing civil world. Coming from a background with a hard academic excellence coupled with a solid experience of a working economy spanning from the Kings College to Cambridge University [the heart of knowledge], right into the money control systems of the British Treasury,...
6 Pages(1500 words)Research Paper

The Legacy of Keynes

...The Legacy of Keynes Introduction: The focus of this discussion relates to the five main issues of Post -War Keynesianism, Keynes' Method, Keynes &the state, Keynes and his Marxist critics and Keynes' general theory. The effect of neoclassical Keynesianism and the differences between Keynes and Marx and effects of Keynesianism in social theory and post war economy are also studied. We would examine several issues with regard to Keynes contributions to Economics. The main questions we would look at include the meaning of the term 'theoretical schizophrenia' in post war economics and its relation to Keynes'...
11 Pages(2750 words)Essay

John Maynard Keynes

...Lecturer: "Ideas shape the of history." John Maynard Keynes Introduction Historians often that if a nation does not know where it has come from then it will be unable to plan effectively for where it will go in the future. However, for the economic history of the USA, unlike many other nations across the globe, its history took place entirely in the time of modern capitalism. A key player in the 20th century economic history of North America is John Maynard Keynes. John Maynard Keynes (1883-1946) was a British economist who is renowned in the present and is considered to be one of the most important players in economic a political theory of his time (Skidelsky 10). He initiated...
11 Pages(2750 words)Essay

Adam Smith & John Maynard Keynes

...Adam Smith & John Maynard Keynes. Adam Smith and John Maynard Keynes are great economists. Their economic theories did not have much in common, however, no one can deny the impressive influence Smith and Keynes had on the policies of their times and even on the theoretical positions of their most vocal opponents. What is more, John Maynard Keynes and Adam Smith offered more than economic theory; they proposed policy solutions to the existing economic problems. These solutions were developed in order to improve macroeconomic performance and national prosperity. As Wesley Mitchell put it, Smith sought to convince people that "the wealth of a nation would be promoted with vastly greater effectiveness by the ‘obvious and simple system... , or in...
10 Pages(2500 words)Literature review


...Assess the impact of the ideas and activities of John Maynard Keynes on the development of the international economy: John Maynard Keynes was arguably the most influential economic thinker of the twentieth century. His ideas and theories have generated academic discussion and debate. As with all landmark scientific achievements in human history Keynesian economics too has had mixed fortunes in its journey so far. The following quote from Knut Wicksell succinctly expresses this condition, “…there is no single doctrine taken to be a scientific truth without the diametrically opposite view being similarly upheld by authors of high repute … in other fields of science these conflicts usually come to an end … It is only in the field... of...
13 Pages(3250 words)Essay

Statistics Review Questions

10 Pages(2500 words)Essay


...Movie Reaction Movie Reaction: Training The training of employees in an organization is an integral part of development and improvement. In fact, the challenge of improvement and service delivery is based on increased training. The training of the employees is a vital aspect in the management of human resource. Therefore, it is vital for the Human resource team to understand and prepare schedules for training. In the video, several issues are addressed that affect human resource training and improvement (Lambert, 2014). These issues include language training especially when focusing on international market. The training video covers array of issues including effective communication. Effective communication is an important factor... ,...
2 Pages(500 words)Movie Review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Reaction of keynes and friesman for FREE!

Contact Us