Believe those who are seeking the truth. Doubt those who find it. Andre Gide
David,I've been thinking about this issue, as I read more and more of economic history. Coming from Finance, I've got a neoclassical background. But I've been reading Austrian stuff (mostly) and also some economic history. A lot of policy pundits/makers align themselves with Keynes in times of crisis. But I think politicians and policy makers think more like Mercantilists. Thoughts?
Well, let's see.Mercantilism: The equation of wealth with gold. A belief in having the state promote exports and limit imports (using the net exports as a way to finance purchases of gold, which is the source of national wealth). Yes, I agree with you. To promote domestic employment, politicians are prone to promote export policies and discourage imports. The idea is to increase employment and production (via Keyensian mechanisms). The added production may augement domestic consumption, but it may also be shipped abroad as well...in exchange for USD, I presume. This last bit sounds a lot like Mercantilist philosophy: let's work really hard to supply the world with all sorts of good stuff in exchange for shiny metal and paper.
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