Friday, February 25, 2011

Future of capitalism

Check out the discussion on capitalism going on over at ISI. Of particular interest is Melaille's discussion of the modern implintation of Keynesianism:

[I]t was a half-baked Keynesianism, since Keynes called for a stimulus in bad times and a repayment of the debt in good times. But the economy has become addicted to stimulus in good times or bad, and the politicians are averse to repayment.

After the current banking crisis, will we be able to return to half-baked Keynesianism, or are we going to have to come up with a new (or return to an old) model?
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