Articles on Keynesian economics

Jan 12th. Keynes, trains and automobiles: Can a fiscal and monetary splurge reboot Japan’s recessionary economy? (The Economist)
Much of the cash will go towards making tunnels, railway lines and other infrastructure safer ==> Keynesian economics
Critics argue that it is a rehash of the concrete-slathering policies that helped saddle Japan with the biggest public debt in the world.
Two important questions:
Does the government’s spending generate higher returns than the borrowing cost?
Does the government-bond yields rise without an increase in inflationary expectations?


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s