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Values Exchange

Keynesian vs Austrian Economics

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6 Mar 2013 5 Respondents
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Alex Neave
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Keynesian vs Austrian Economics
The tradition form of economics from as far back as the mid fifties has been that of the British economics Meynard Keynes. This economic system relies around an interventionist and inflationary government in times of recession and a non interventionist policy in times of growth. However as of the 1980's Austrian Economics and the concept of the business cycle which said that even in economic recession that the government should remain non-interventionist as the economy will readjust itself slower if than if it had been left to its own devices and that stimulus will only create bubbles that do not represent actual demand. The argument between these viewpoints rages with both sides accusing each other of causing the GFC
What economic theory do you subscribe to