We simply do not know!
John Gray: Keynes, 19 November 2009
Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism
by George Akerlof and Robert Shiller.
Princeton, 230 pp., £16.95, February 2009,978 0 691 14233 3 Show More
by George Akerlof and Robert Shiller.
Princeton, 230 pp., £16.95, February 2009,
“... The last two years, in which capitalism has suffered one of its periodic shocks, have given John Maynard Keynes a new lease of life. Events have demonstrated the limits of the theory that economies can be relied on to be stable if they are lightly regulated and otherwise left to themselves. There is now much talk of the paradox of thrift, whereby the rational choices of individuals can prove collectively ruinous, and of the need for government to counteract the inherently anarchic tendencies of markets ... ”