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Fwd: Re: Fwd: Pre-debate: The Age of Friedman: America's most influential living economist
---Indranil DasGupta wrote:
> Kush: I have the following modest comments to offer:
> Friedman vs. Keynes: I still believe that Keynes is the most
> influential economist TODAY (50 years after his death!). If
> anyone asks why, watch Alan Greenspan who swears by him. Federal
> Reserve Policy is still to calibrate economic growth with inflation
> to acheive an optimal mix just as Keynes advocated, rather than
> Friedman's notion that controlling inflation is the only goal of
> the Fed.
> The Great Depression: Friedman is only partially right. President
> Hoover's tight money policy AFTER the Crash of '29 exacerbated
> the depression but did not CAUSE it. That was a result of capitalism's
> oscillating nature between boom and bust. In fact, it is Keynes'
> advocacy of "automatic fiscal stabililizers" such as unemployment
> benefits, infrastructure spending and bond financing which have
> reduced the volatility in the US economy in the past 60 years.
> Natural Rate of Unemployment: Friedman's big contribution to macro
> economics in the 1970s is fast losing credibility as a concept.
> The US now has 4% unemployment with 1% inflation. The lowest
> combination in the post war era. Other concepts of Friedman have
> fared better like the "negative" income tax (EITC) and deregulation.
> I would love to join this discussion group , if you would only tell
me how. Take
> care, Neel.
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