While many of the conflicting claims can be reconciled in terms of the short-run and long-run orientation of Keynesians and monetarists, respectively, and in terms of their contrasting philosophical orientations, neither vision takes into account the workings or failings of the market mechanisms within the investment aggregate.Austrian macroeconomics is set apart from both Keynesianism and monetarism by its attention to the differential effects of interest rate changes within the investment sector, or-using the Austrian terminology-within the economy's structure of production.
Roger GarrisonRelated topics
account aggregate apart attention austrian differential interest investment market orientation production rate sector set structure vision while keynesianism macroeconomics workings monetarism effectsRelated quotes
Even while I protest the assembly-line production of our food, our songs, our language, and eventually our souls, I know that it was a rare home that baked good bread in the old days. Mother's cooking was with rare exceptions poor, that good unpasteurized milk touched only by flies and bits of manure crawled with bacteria, the healthy old-time life was riddled with aches, sudden death from unknown causes, and that sweet local speech I mourn was the child of illiteracy and ignorance. It is the nature of a man as he grows older, a small bridge in time, to protest against change, particularly change for the better.
John Steinbeck
Broadly speaking, [Keynesianism means] that the government has a specific responsibility for the behavior of the economy, that it doesn't work on its own autonomous course, but the government, when there's a recession, compensates by employment, by expansion of purchasing power, and in boom times corrects by being a restraining force. But it controls the great flow of demand into the economy, what since Keynesian times has been the flow of aggregate demand. That was the basic idea of Keynes so far as one can put it in a couple of sentences.
John Kenneth Galbraith
The really important facts were that spatial relationships had ceased to matter very much and that my mind was perceiving the world in terms of other than spatial categories. At ordinary times the eye concerns itself with such problems as where? - how far? - how situated in relation to what? In the mescaline experience the implied questions to which the eye responds are of another order. Place and distance cease to be of much interest. The mind does its perceiving in terms of intensity of existence, profundity of significance, relationships within a pattern.
Aldous Huxley
There isn't any room,” said Joshua. "You travel back along the line of time and you don't find the past, but another world, another bracket of consciousness. The earth would be the same, you see, or almost the same. Same trees, same rivers, same hills, but it wouldn't be the world we know. Because it has lived a different life, it has developed differently. The second back of us is not the second back of us at all, but another second, a totally separate sector of time. We live in the same second all the time. We move along within the bracket of that second, that tiny bit of time that has been allotted to our particular world.
Clifford D. Simak
Let's begin with capitalism, a word that has gone largely out of fashion. The approved reference now is to the market system. This shift minimizes - indeed, deletes - the role of wealth in the economic and social system. And it sheds the adverse connotation going back to Marx. Instead of the owners of capital or their attendants in control, we have the admirably impersonal role of market forces. It would be hard to think of a change in terminology more in the interest of those to whom money accords power. They have now a functional anonymity.
John Kenneth Galbraith
