Re: We're all * now

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Date: Wed Sep 20 2000 - 07:04:19 PDT

In a message dated 9/19/2000 11:52:18 PM, writes:

>One possibility: "We are all Keynesians now", which I've seen
>attributed to Richard Nixon

this (from a source I definitely cannot vouch for, The Gold Standard: A
Critique of Friedman, Mundell, Hayek and Greenspan from the Free Enterprise
Perspective by Walter Block, Economics Department, University of Central
Arkansas. Conway AR 72035 might
be the correct attribution of We are all Keynsians now.


16. Objections might be levelled at the claim that this is Keynesian and not
‘monetarist." Although most debates on this and
related topics in the professional literature have been between these two
purported schools of thought, nothing of the kind is
true. But both monetarists and fiscalists employ the Keynesian model of
aggregate demand. Therefore, these controversies
are more of an internecine battle than a disagreement between two separate
philosophies. As Friedman himself says, "we are
all Keynesians now" (cited in Samuelson, 1970, p. 193).

        As it happens, Friedman objects that he has been quoted out of
context (personal correspondence). His full statement
on this matter as follows: "If by Keynesianisn you mean public policy
prescriptions of big government budgets, deficit
spending, etc., then there are great differences between we monetarists and
the Keynesians; but if you mean utilization of the
same tools of economic analysis, then we are all Keynesians now" (paraphrase,
based on personal conversation). For some
purposes, one is inclined to take the Friedman side in his altercation with
Samuelson. But for our public policy purposes, the
alternative view has its attractions.

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