If this is Keynesian then Willy Hutton’s a Muppet

I also suspected that ultimately the Keynesian policy of flooding the financial system with liquidity would eventually trigger the upward turn of the cycle, and that when it came it would be surprisingly fast as the economy tried to recover lost ground – what I have described as a “snap-back”.

Monetarism is Keynesian now is it?

Sheesh.

And here’s the best bit of it:

It is this nexus – technology rooted in great universities, innovative start-ups and small firms with loans collateralised against rising house prices, internationalisation via our great airports and all keyed into the buying power of locally sited multinational headquarters that is creating a new economy at a startling pace. This is happening spontaneously, independently of politicians.

Excellent, so we’ve now got even Willy Hutton saying that as long as the politicians stay out of things the market will indeed deliver growth. Good, ain’t that great.

Can we now retire Hutton as an economic commentator given that he’s just repudiated everything he’s said in the last few decades?

10 comments on “If this is Keynesian then Willy Hutton’s a Muppet

  1. I also suspected that ultimately the Keynesian policy of flooding the financial system with liquidity would eventually trigger the upward turn of the cycle.”

    Must say I can’t recall a single occasion over the last three years when Hutton (or other left wing economic commenters) have ever claimed that a regime of aggressive monetary policy paid for by tight fiscal discipline would lead to a recovery.

    In fact for three years the common complaint was that the Tories had no growth/recovery policy.

  2. “technology rooted in great universities”: or indeed in minot universities. It’s the technology that matters, not its pedigree.

    “How are small firms supposed to offer rising house prices as collateral on their debts?” The traditional method is that the owner of the business mortgages his house.

  3. There are the right sort of politicians and the wrong sort. The Tories, obviously, are the wrong sort. But if Miliband and Balls were the ones interfering with skilfully controlling technological development then it would all be fine.

    Just as monotheists are people who have repudiated all but the one god, so Labour shills like Hutton are people who are de facto cyclically libertarian.

  4. Can you imagine Keynes hammering on his coffin lid shouting, I did not say that at all, I said save during the upturn to spend money in the down turn. Not borrow massive amounts of money to waste during the boom and borrow even more money to waste during the down turn.

    Keynes does not deserve the reputation that the Left gives him, we could have a libel suit for defamation on behalf of Keynes against the Left, like the bloke who sued God over the act of God cause of his son’s death.

  5. Spot on Bunny… The left never mention the saving part of Keynes’s theory…

    Probably because they’re a bunch of mendacious, lying, power mad twunts…

  6. dearieme – “or indeed in minot universities. It’s the technology that matters, not its pedigree.”

    Yeah but in fairness, how much technology comes out of minor universities? The last important thing I can think of that did not come out of one of the really old universities was the jet engine.

  7. WKPD:”Reflecting the fundamental importance and applicability of MRI in medicine, Paul Lauterbur of the University of Illinois at Urbana-Champaign and Sir Peter Mansfield of the University of Nottingham were awarded the 2003 Nobel Prize in Physiology or Medicine for their “discoveries concerning magnetic resonance imaging”.”

    So there’s two minor places that made a big contribution.

  8. Correction: Mansfield’s work was done at Nottingham but Lauterbur’s was done at Stony Brook University in New York. But the point stands: those are not “great” universities.

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