New PDF release: 30-Second Economics

By Donald Marron

ISBN-10: 1435123107

ISBN-13: 9781435123106

30-Second Economics

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Liberalize: Open your borders to free trade and attract foreign direct investment. Deregulate: Don’t limit competition or try to keep players out of the market. And stick to fiscal discipline: Don’t let government spend more than it brings in. These policies were designed with Latin America in mind, but soon they were applied in other regions. Poor states that took IMF loans were forced to satisfy conditions, known as structural adjustment policies: stabilize, privatize, and so on. These programs have come under heavy fire as a “one-size-fits-all” remedy for countries that are anything but the same, an adjustment program that does more harm than good—and a program the rich countries fail to follow themselves.

Increase the supply to encourage growth, reduce it to control inflation. JOHN MAYNARD KEYNES Few economists achieve such success that their name is given to an entire branch of the subject—Adam Smith didn’t achieve that, nor did Alfred Marshall, and nor did Milton Friedman. Yet, even now, 60 years after its creator’s death, the principles of Keynesianism are once again discussed almost daily on our television screens. So who was John Maynard Keynes, and why is he once again so influential? Keynes came to public prominence during the Treaty of Versailles in 1919 when he spoke out against the punitive reparation payments being imposed by France and the United States, arguing that they would make it impossible for the German economy to recover.

Until the 1970s, most economists believed it was impossible to have both at the same time, and much of Keynesian theory was based on this assumption. The advent of stagflation in the 1970s meant that governments could no longer spend their way out of recession without risking unacceptably high inflation. As a result, Keynesian policies were marginalized for the next three decades. supply-siders Those who believe that economic prosperity is dependent on creating the best conditions possible for the suppliers of products and services (that is the employers).

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30-Second Economics by Donald Marron

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