Tag Archive for 'Keynes'

Another important point

Tyler Cowen writes, in the midst of a discussion of Keynes’s General Theory, spending multipliers and the velocity of money:

You can’t just take a partial derivative of an accounting identity and call the result a causal relationship.

[My previous posts on spending multipliers and the velocity of money.]

A quote from Keynes

“There is nothing a government hates more than to be well-informed; for it makes the process of arriving at decisions much more complicated and difficult.”

John Maynard Keynes, The Times (March 11, 1937); Collected Writings, vol. 21, p. 409

(via Bruce Bartlett (via Brad DeLong))

Ahhh … the sweet, soothing succour of cynicism. 🙂