October 16, 2019

MACROECONOMIC THOUGHTS.PART 12

applicable to today's mounting economic challenges.They showed otherwise that keynesian model largely misrepresented by their relationship the nature of saving,investment and economic growth.While the fiscal multiplier was recognised by the keynesian school,the money multiplier that deals with money self replication process,roots is monetarist.Both are dominant broad multipliers in macroecomicmanagement,the latter results from a system of fractional reserve banking.keynesians argued economies do not stabilise themselves too quickly unless there is governmental massive intervention to grow shortterm demand.The same with wages and employment,and prices barely respond too quickly until the monetary policy intervention is leveraged or applied.Consequently,slowdown change in terms of growth in short term demand and boost employment.There is no doubt the pioneering influence of keynesian economics that towered extremely like a colosus over the spectre of macroeconomic scholarship could not be whisked awayin a jiffy

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