How fascinating

Exactly.  And the same thing occurred in the Great Depression.  The most respected monetary theories going into the Great Depression were the more progressive price level/NGDP targeting views of people like Fisher, Keynes, Hawtrey, Cassel, Pigou, Hayek, etc.  And their predictions of the catastrophic implications of a big drop on the price level and/or NGDP were borne out.  And policymakers completely ignored their advice and went with their gut instincts.

It\’s not, in this instance, Keynes or Hayek, it\’s Keynes and Hayek.

1 thought on “How fascinating”

  1. Do you follow Steve Keen? I particularly enjoyed this:
    “…This is something that Keynes realized after writing the General Theory (Keynes 1936), but which never made its way into the textbook version of Keynes that conventional economists like Stiglitz and Krugman learnt as Keynesianism”

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