Timmy elsewhereJanuary 29, 2012 Tim WorstallTimmy Elsewhere6 CommentsAt the ASI. An interesting quote from Keynes pointing out that it\’s not all about aggregate demand. previousConverting Teh GaysnextStephen Hester: Tax dodging bastard 6 thoughts on “Timmy elsewhere” Ian B January 29, 2012 at 3:55 pm It’s worth remembering that Keynes’s inconsistency was so notorious that he was lampooned in the press as “the India rubber man”. JamesV January 29, 2012 at 4:04 pm Aside from the economic pessimism, which is true, a lot of people really have run out of credit and thus ability to create demand. And a lot of that economic pessimism comes from the fact that many people who lose their jobs (yes I know we don’t have millions of unemployed agricultural labourers or buggy whip makers running around and this all feeds through to benefits for the consumer) know that the next one will not pay as well as the last one did, and are cutting their cloth accordingly. Se we have both short-term and long-term problems to solve. Simultaneously. JustAnotherTaxpayer January 29, 2012 at 4:52 pm “For that entrenches the old way of doing things” If “stimulus” means fiscal deficit spending, sure. But the Sumner view is the opposite, surely? Stabilising expectations of future AD growth with NGDP level targeting works to spur current *investment* spending. Empirically: how much investment spending is happening now, how much in the dotcom boom? Ian B January 29, 2012 at 5:26 pm Define “investment”. JustAnotherTaxpayer January 30, 2012 at 1:14 am Investment = buying new capital goods. bloke in spain January 30, 2012 at 5:42 pm “Investment = buying new capital goods.” Curious. A one eyed Scotsman once told me it was paying last years NHS wage bill. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.