Business Cycles Explained: Keynesian Theory скачать в хорошем качестве

Business Cycles Explained: Keynesian Theory

In the Keynesian corner, Tyler Cowen examines the Keynesian theory of the business cycle. Learn more: http://bit.ly/1HVAtKP According to the Keynesian model, substantial economic slumps come from falling aggregate demand—the sum of overall consumption, investment, and government spending within the economy. When Aggregate Demand falls, producers of goods and services lose revenue and are forced to adjust. How does the market handle this economic adjustment? In order for businesses to maintain profit levels, they must reduce production costs. But cost cutting is difficult because of what economists call 'sticky wages and prices.' Cutting wages can cut morale and, in turn, cut productivity. In the end, employers wind up cutting people altogether in order to escape the sticky situation. So stickiness translates into higher levels of unemployment. Unemployment leads to decreased spending and further depresses aggregate demand. Falling aggregate demand combines with wage stickiness, dragging the economy into systemic crisis. Cowen awards the Keynesian model points for accurately describing real-world business fluctuations. Falling aggregate demand has paved the way to major downturns, including the Great Depression. However, Cowen notes that aggregate demand is not the primary culprit in all crises. And when it comes to curing crises, the Keynesian model comes up short. SUBSCRIBE: http://bit.ly/1HVAtKP FOLLOW US: Website: https://www.learnliberty.org/ Facebook:   / learnliberty   Twitter:   / learnliberty   Google +: http://bit.ly/1hi66Zz LEARN MORE: Check out Prof. Cowen's popular econ blog: http://www.marginalrevoultion.com LEARN LIBERTY Your resource for exploring the ideas of a free society. We tackle big questions about what makes a society free or prosperous and how we can improve the world we live in. Watch more at http://bit.ly/1UleLbP