Monday, July 20, 2009

Keynes, Koo, and Minsky ...

... in a nutshell.  If you ever wanted a quick explanation of the basic idea of Keynesianism, Krugman has a chart that goes straight to the point -- if we all try to save at the same time the only equilibrium you can reach is when we all get too poor to save anymore, and only government deficits can prevent us from reaching this equilibrium.

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