Keynes Quotes - page 2
Ball, Mankiw, Romer and others style themselves as New Keynesians. Their program is to develop improved microeconomic foundations for imperfectly flexible prices. In the process, they hope to illuminate the paradox that individually rational or near-rational behavior can result in significant collective market failures. These are certainly laudable objectives. In the end, I suspect, the program will not change the essential substance of Keynesian macroeconomics. But it will make Keynes more palatable to theorists.
James Tobin
The central message is still that, as Keynes argued, fiscal policy is the answer to liquidity traps, financial or political. The arguments against fiscal policy in Japan, so far as I understand them are intellectually fallacious; they would receive failing grades in an undergraduate macro exam.
James Tobin
Economics has always flourished and acquired energy from controversies generated by practical policy questions of the day. That was true in the times of Smith, and Ricardo, and Keynes, and it is true today. These periods of division and revolution and counterrevolution are generally followed by periods of synthesis and consolidation from which the science emerges stronger. i am optimistic that this will happen again, and that the best of the insights of the new clasicals will be absorbed in a mainstream, in which the essential insights of Keynesian economists also survive.
James Tobin
I had, to be sure, been drawn into economics when the General Theory was an exciting revelation for students hungry for explanation and remedy of the Great Depression. At the same time, I was uncomfortable with several aspects of Keynes' theory, and I sought to improve what would now be called the microfoundations of his macroeconomic relations.
James Tobin
To understand the economy then is to comprehend how it is driven by the animal spirits. Just as Adam Smith's invisible hand is the keynote of classical economics, Keynes' animal spirits are the keynote to a different view of the economy - a view that explains the underlying instabilities of capitalism.
George Akerlof
Economic history has contributed significantly to the formulation of economic theory. Among the economists who have found history an important source for their ideas are Smith, Malthus, Marx, Marshall, Keynes, Hicks, Arrow, Friedman, Solow, and Becker. Failure to take account of history, as Simon Kuznets (1941) stressed, has often led to a misunderstanding of current economic problems by investigators who have not realized that their generalizations rested upon transient circumstances. Nowhere is the need to recognize the role of long-run dynamics more relevant than in such pressing current issues as medical care, pension policies, and development policies.
Robert Fogel
Professor Ohlin also made an important contribution to what now might be called the macro-economic aspects of a country's balance of payments. In 1929 in the Economic Journal he engaged in a famous controversy with Keynes on the problem of transferring payments from one country to another across the foreign exchanges. In this he laid stress upon the income-expenditure effects of the reduced spending power in the paying country and of the increased spending power in the recipient country. In doing so he made use of the usual distinction between a country's imports and exports; but in addition he emphasised the importance of the less usual distinction between a country's domestic non-tradeable goods and services and its tradeable, exportable and importable, goods. I made some use of this latter distinction in my Balance of Payments; but looking back I regret that I did not let it play a much more central role in that book.
James Meade
The ‘false precision' of which Maynard Keynes accused his economist critics is with us still. Worse: we have smuggled in a misleadingly ‘ethical' vocabulary to bolster our economic arguments, furnishing us with a self-satisfied gloss upon crassly utilitarian calculations. When imposing welfare cuts on the poor, for example, legislators in the UK and US alike have taken a singular pride in the ‘hard choices' they have had to make.
Tony Judt
The ranks of the City are now divided. The advanced section, headed by Mr McKenna and Mr Keynes, face the orthodox and reactionary ranks which are led by Mr Montagu Norman and the heads of the Treasury. To the uninitiated it...seems a little unfortunate that the ex-Labour chancellor should appear...to be an ardent supporter of Mr Montagu Norman. It will be little less than a disaster if in this struggle Labour support is accorded to the reactionary elements in the City.
Oswald Mosley
Welcome to the early twenty-first century, human.
It's night in Milton Keynes, sunrise in Hong Kong. Moore's Law rolls inexorably on, dragging humanity toward the uncertain future. The planets of the solar system have a combined mass of approximately 2 x 10 kilograms. Around the world, laboring women produce forty-five thousand babies a day, representing 10 MIPS of processing power. Also around the world, fab lines casually churn out thirty million microprocessors a day, representing 10 MIPS. In another ten months, most of the MIPS being added to the solar system will be machine-hosted for the first time. About ten years after that, the solar system's installed processing power will nudge the critical 1 MIPS per gram threshold-one million instructions per second per gram of matter. After that, singularity-a vanishing point beyond which extrapolating progress becomes meaningless. The time remaining before the intelligence spike is down to single-digit years ...
Charles Stross
Differences in the incidence of destruction and "death" do not account for the reluctance to refer to international politics as a harmonious realm, while competitive economies are often so described. Instead, one may say that the standards of performance now applied to international political systems are higher, or at least widely different. As John Maynard Keynes once remarked, those who believe that unhampered processes of natural selection lead to progress do not "count the cost of the struggle" (1926, p. 37). In international politics, we often count nothing but the costs of the struggle.
Kenneth Waltz
I find it amazing now that my first economics class, taught by Alan Sweezy, used John Maynard Keynes's General Theory of Income and Employment as the textbook. Although this book is one of the most influential works of the twentieth century, it makes a really lousy textbook. Moreover, since I now regard Keynes's analysis as seriously flawed, it is surprising that I enjoyed the course so much. As a student, I appreciated the simple way that the Keynesian model explained the workings and failings of the overall economy. Especially appealing were the clever policy remedies, such as increased government spending and tax cuts, that Keynes recommended to combat unemployment. Too bad that I discovered later that the model was theoretically and empirically deficient!
Robert Barro
In fact, the only person to rival Friedman for policy influence in the twentieth century is John Maynard Keynes, who had a strikingly different view of the role of government. Keynes was influential because he advocated more government intervention into what he perceived as poorly functioning private economies caught up in the Great Depression. In contrast to Keynes, Friedman put the main blame for the Depression on government failures, especially of monetary policy. Hence, the Depression did not make Friedman a fan of big government. He also found in the Federal Reserve's failure to prevent deflation an argument in favor of monetary rules. As the world evolved- with low inflation becoming the major mission of central banks and free markets and secure property rights becoming the main policies to promote economic growth-Friedman surely won the intellectual battle.
Robert Barro
Hayek watched the interwar collapse with horror, as Keynes did, and shared many of Keynes's liberal values. What he failed to understand is that these values cannot be renewed by applying any formula or doctrine, or by trying to construct an ideal liberal regime in which freedom is insulated from the contingencies of politics.
John N. Gray
Correctly anticipating the rapid growth of living standards, moreover, Keynes predicted that within a century people's material wants would be satiated, and so per capita consumption would stop growing. People would work less, but only because their need for income, and more important their desire for it, was less. And then the challenge to society would be the management of unprecedented voluntary leisure. This was a popular 1930s theme--think of Huxley's Brave New World--but it underestimated the ability of business to create new wants, and new goods and services to fulfill them.
Richard Posner
To understand the economy then is to comprehend how it is driven by the animal spirits. Just as Adam Smith's invisible hand is the keynote of classical economics, Keynes' animal spirits are the keynote to a different view of the economy - a view that explains the underlying instabilities of capitalism.
Robert J. Shiller
We are entitled to be disappointed, but not to be surprised, by the persistence of governmental intervention in economic life. A school of thought attributes great influence to public opinion in the movements toward or away from laissez-faire. Among the many members of this school one may mention Albert Venn Dicey, John Maynard Keynes, and Milton Friedman.
George Stigler