Thursday, December 15, 2011

How can supplysidepolices and fiscalpolicies correct deficits on a countrys current account balance of payment?

They can't. The problems remain and all that happens is that they are postponed. This in effect is the result of the application of Keynesian Theory. There is no such thing as a free lunch and the theory of pump-priming of Keynes is faulty, This theory looks at the MACROeconomy as if it were a MICROeconomy. Good business standards (such as investment using the public company shares and anticipating equity growth) do not apply when the whole country is involved.

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