The Short and the Long Runs
  • Evan Osborne


 Chapter 12 was devoted to the study of how government manages short-term economic fluctuations. This policy is not difficult to justify, at least on the surface. Economic downturns cause some people, often seemingly randomly and unfairly, to bear the costs of losing jobs. Sometimes downturns pass with little pain, sometimes (the 1930s, the years after 2008) they endure. Assuming the flow of technological innovation doesn’t come to a permanent halt, which it never has before in human history (and especially since 1780), the economy will eventually right itself. But how long must we wait? Keynes himself famously dismissed the preoccupation with the tendency of the economy to eventually recover with a famous quote:


Interest Rate Fiscal Policy Government Spending Public Debt Aggregate Demand 
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Copyright information

© Evan Osborne 2013

Authors and Affiliations

  • Evan Osborne
    • 1
  1. 1.OhUS

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