Critiquing Keynesian Economics
John Taylor discusses his critical stance on the use of discretionary fiscal policy to mitigate the business cycle, emphasizing the importance of getting the overall stance of fiscal policy right. He argues against the idea that all government spending is useless, but highlights the potential negative consequences of fine-tuning and the tendency to expand spending. Taylor challenges the notion of a "free lunch" and urges a quantitative analysis of the timing, numbers, and size of economic interventions.In this clip
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John Taylor on Fiscal and Monetary Policy
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