Keynesians argue government can provide a countercyclical force to smooth credit cycles, while Austrians counter that the whole project of central banking and rate manipulation amplifies the private-sector credit waves in the first place, so trying to put out one fire often starts the next; and although Keynes prescribed deficits in recessions and surpluses in good times, in practice governments always run deficits of merely different sizes.
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Lynn AldenEvidence Quote
“trying to put out the fire often starts the next fire... he would say run deficits during recessions and run surpluses during good times. Whereas in practice, they're always running deficits”
Created: 6/18/2026, 1:58:51 PM
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