October 13, 2019

MACROECONOMIC THOUGHTS.PART 9

the inherent fear and doom it exudes in the spiral among businesses and investors,leading to sustainable of economic depression and engender massive unemployment.The countercyclical fiscal policy stipulates that government should embark on deficit spending to restore investment decline and boost consumer spending to grow agregate demand.His utter criticism of excessive savings if not for specific purpose such education and retirement was regarded as peril in waiting.A peril in waiting,given the fact that the stagnant nature of the sedentary money,will further stagnate the economy at large with less money circulating in the economy.Frankly speaking,it courted the model massive contempt or public ridicule from the generation of classical economists and free market or neoliberal exponents.This partly contributed to prevent total crash during the depression.Still it appears debatable to argue that even till date the market itself is selfregulating and tends to return to equilibrium state or that market clears.

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