keynes - Economics Students Society of Australia

keynes

A collection of 7 posts

In defence of uncertainty

In defence of uncertainty

“When the facts change, I change my mind. What do you do, sir?” Regardless of individual opinion on the implications of his work, John Maynard Keynes’ alleged response to a cynical questioner is timeless. To collectively change our views in light of new evidence is to allow political and economic

Economics: an intro

Economics: an intro

One of the authors of a secondary school textbook that I swotted over doing economics at secondary school died recently. His name was Neville Drohan. He was a highly regarded teacher and Principal at Melbourne High School and a graduate of the University of Melbourne. He also trained economics teachers

Low and steady wins the race

Low and steady wins the race

Following the 1979 OPEC crisis, governments from developed countries across the globe recognised the need to bring inflation – the rate of increase in prices over time – under control. Sparked by a decrease in oil output due to the Iranian revolution, oil prices rose from USD$15.85 to USD$39.

Debunking the paradox of thrift

Austrian economics

Debunking the paradox of thrift

John Maynard Keynes, during his work in the 1930s, popularised a concept taught in many macroeconomics classes known as the paradox of thrift, where he outlined the harsh consequences when individuals choose to save a greater proportion of their income in a recession. The logic employed by Keynes here is

Working hard or hardly working?

economic interdependence

Working hard or hardly working?

I think much of what I like about capitalism stems from the idea of certainty; the idea that we can be sure, perhaps naively or misleadingly, that individuals will always act in accordance with self-interested values. It definitely makes it a lot easier to figure out how I should act

The Austrian economists: why we would bring them back from the sidelines

The Austrian economists: why we would bring them back from the sidelines

Amongst the many schools of economic thought, the Austrian school lies outside the economic mainstream. However, it has perhaps surprisingly punched above its weight in terms of its influence over the political and economic thought of the 20th century. Some of the most prominent and influential economists were from this

Gold Class Animal Spirits

Gold Class Animal Spirits

In his 1936 book ‘The General Theory of Employment Interest and Money’ John Maynard Keynes outlined how rather than being independently rational, investors were often prone to erratic herd-like behaviour. He argued that macroeconomic stability is inherently vulnerable to the ‘animal spirits’ of speculators. The recent deflation of the post