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01 February 2010

Keynes vs Friedman: Why Governments Can't Spend Their Way Out of A Recession.

I always thought that John Maynard Keynes was right, that the when investment's contract during a recession or depression government needs to step in and increase consumption.  The following article, Why Government Spending Does Not Stimulate Economic Growth, talks about some of the fallicies of Keynesian Economics.  It had its time and place, but I think the moneterists lead by Milton Friedman have a more complete view on the role of government in managing economic fiscal policy.

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