I would summarize the Keynesian view in terms of four points: 1. Economies sometimes produce much less than they could, and employ many fewer workers… - Paul Krugman

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I would summarize the Keynesian view in terms of four points: 1. Economies sometimes produce much less than they could, and employ many fewer workers than they should, because there just isn’t enough spending. Such episodes can happen for a variety of reasons; the question is how to respond.
2. There are normally forces that tend to push the economy back toward full employment. But they work slowly; a hands-off policy toward depressed economies means accepting a long, unnecessary period of pain.
3. It is often possible to drastically shorten this period of pain and greatly reduce the human and financial losses by “printing money”, using the central bank’s power of currency creation to push interest rates down.
4. Sometimes, however, monetary policy loses its effectiveness, especially when rates are close to zero. In that case temporary deficit spending can provide a useful boost. And conversely, fiscal austerity in a depressed economy imposes large economic losses.

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About Paul Krugman

Paul Robin Krugman (born February 28, 1953) is an American New Keynesian economist, Professor of Economics and International Affairs at the Woodrow Wilson School of Public and International Affairs at Princeton University, Centenary Professor at the London School of Economics, and a former op-ed columnist for The New York Times.

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Alternative Names: Paul Robin Krugman Paul R Krugman
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From the point of view of a modern economist, the most striking feature of the works of high is their adherence to a discursive, nonmathematical style. Economics has, of course, become vastly more mathematical over time. Nonetheless, development economics was archaic in style even for its own time. Of the four most famous high development works, Rosenstein-Rodan's was approximately contemporary with Samuelson's formulation of the Heckscher–Ohlin model, while Lewis, Myrdal, and Hirschman were all roughly contemporary with Solow's initial statement of growth theory.
This lack of formality was not because development economists were peculiarly mathematically incapable. Hirschman made a significant contribution to the formal theory of in the 1940s, while Fleming helped create the still influential of s. Moreover, the development field itself was at the same time generating mathematical planning models—first Harrod–Domar type growth models, then linear programming approaches that were actually quite technically advanced for their time.
So why didn't high development theory get expressed in formal models? Almost certainly for one basic reason: the difficulty of reconciling economies of scale with a competitive market structure.

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