Monday, October 20, 2008

Visions and Frameworks in Macroeconomics

Via Roger W. Garisson (Auburn University), "Visions and Frameworks in Macroeconomics", three excellent powerpoints explaining:

- Keynes' Business Cycle theory
- Hayek's Business Cycle theory
- how the two compare

[AA] Second-year students will notice that the theory of Keynes is the framework we studied in Global Economics. The presentation shows that it doesn't really explain dynamic reality. You have to read just one, make it the Hayek powerpoint. It explains nicely how artificially low interest rates cause boom-bust cycles - hope it sounds familiar :)

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