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Keynesian

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Keynesian

John Maynard Keynes

By: Felipe Argote

At some point we have argued that among economists is no consensus, and agreed that although there are differences between the point that it is difficult to pigeonhole us into positions bounded by a border. On the contrary there are something like matrices and shades where we are at some points but we distance ourselves from other

That does not mean at all that there can be no schools of thought where it is possible to place a group economists, but which in turn are compared in some respects from that school. If necessary, and it is, locate the positions of economists, I would say we could set it according to what level of state involvement proposed.

already know that the classical liberal ideology touting laissez faire and the invisible hand. That is zero tolerance for state intervention. Keynesian thinking retrieves the state's position as a driver of demand creation, but the business class by giving the lead in economic decisions. We know that Marxism calls for a qualitative leap that will lead to the elimination of the bourgeoisie and the socialization of the means of production. Then we have the Austrian school, followers of Friedrich von Hayek and Milton Friedman disciple proposed and achieve a neoliberal variant, where the state guarantees that there are no monopolies and respect the laws of the free supply and demand but only so far.

Friedrich Von Hayek

neoliberal response to the crisis of the eighties initiated by the stagflation of the seventies is, as we know, the phenomenon of globalization that demand as a result of liberalization policies economic. But this model was implemented by increasing consensus that governments have a memory does not hold water to the beginning of XXI century and makes real catastrophe in the year 2008 with the global financial crisis, which began in the U.S. but spread like scrum by the rest of the developed countries.

currently neoliberal fundamentalists before the astonished eyes of the world, burned their own books and started a state intervention only comparable to the Marxist revolutions. The U.S. state nationalized the big banks and car manufacturers, and subsidized companies to avoid bankruptcy.

Like neoliberalism in the 80's, which comes to justify actions already taken as the intervention of the international financial institutions, particularly the IMF and World Bank who co-govern virtually indebted countries, now must come one model to justify state intervention, and not to say that the quintessential state is inefficient and deliverables state enterprises to private enterprise, but that the state save the icons of free enterprise and neoliberalism as such. Had to live to see it. Not just the practical argument that partially changed his mind. They even think they should privatize the profits, but now think you have to socialize the losses.

Joseph Stiglitz

are in the midst of economic change as profound as when the "new deal", which introduces the Keynesian model scene, or moments of the "debt crisis" of the eighties, introducing neoliberalism and riding on the crest of globalization.

The sector raised the alarm at the trend the crisis of the neoliberal model is led by so-called neo-Keynesian including Baumol, Krugman, Soros, Samuelson, Meier, until recently, Stiglitz and Ben Bernanke, which theoretically stands as neo Keynesian but in practice has become monetarist from his post as president of the U.S. Federal Reserve.

Ben Bernanke

I personally think that the dismantling of the neoliberal model was initiated by U.S. President George Bush after the terrorist attacks of September 11, 2001 when it awarded grants to United States carriers to prevent their collapse.

few years later, amid the financial crisis in 2008, the Republican government has invested billions of dollars in shares of banks and private companies, thereby breaking with the neoliberal model that so far have embraced with passion.

In Latin America the government of Nestor Kirchner in Argentina, but Bolivia, Brazil, Ecuador, Venezuela course, where the model has been baptized by Hugo Chavez as XXI Century Socialism.

In Panama, the breakdown of the neoliberal model began in the government of Martin Torrijos, when you start with the plan of selling so-called "competing products", where the state is involved in the economy, then the pharmacy "compete" and "networking opportunities", which copies the very successful initiative developed by the socialist government of Luiz Ignacio Lula Da Silva in Brazil.

The brand new Panamanian government in 2008 headed by billionaire Ricardo Martinelli deepening the neoliberal model rupture with the plan entitled "One Hundred to the Seventy, called" Universal Fellowship ", among others. This made him the government over state subsidies granted in the country's history. This is an application, although we unconsciously Keynesian recycling by government Arnulf-coalition Democratic Change.

Very few can guess the future development of this new-old Neo Keynesian model was in crisis at the beginning of the eighties of last century and is now reemerging from the ashes, but if there's anything we can be insurance is undoubtedly the neoliberal model is history. Unless otherwise criterion.

When Does Baby's Head

FREE FALL OF JOSEPH STIGLITZ

By: Felipe Argote

The new book by economist Joseph Stiglitz is a veritable treatise on post-neoliberal political economy.

Principia with the explanation of the genesis of the global financial crisis: "start (the crisis) with the technology bubble burst in the spring of 2000, a bubble which Greenspan, Federal Reserve chairman at the time, allowed its development and had sustained growth in the 90's. "

Bush administration, according to Stiglitz's book, took the collapse of the tech bubble it bottomed In 1993, as an excuse to cut taxes for the wealthy with the argument that the tax cuts to big business was the cure for all ills. The crisis is then fed from 2003 when the war began Iraq in the price of a barrel of oil was rising $ 32 to $ 137 in 2008. This meant that Americans were paying U.S. $ 1400 million a day in oil imports compared to 292 million before the war.

That was the beginning, according to Stiglitz the current crisis explodes unstoppable in 2008. The contradiction is that to exploit the crisis, the great irony is that Greenspan and Bush decided to make the state the owner of one of the largest automobile factories in the world, the largest insurance company and many of the major banks. In a country where socialism is a curse, says Stiglitz, is that the Bush administration, which made a fetish of the market (that's what I say), decided to socialize the risk and intervened in the market in a manner unprecedented in American history and the world.

About Obama administration ranks as pragmatic issues because although, in practice, continued with the most proven wrong policies of his predecessor in the White House, George Bush. According to Stiglitz, this policy has benefited Wall Street, but has done little for the ordinary citizen. Says that the best thing you can say about the economy in 2009 is that it has managed to end its free fall (fere fall), but we should consider ending their free fall does not mean that you have returned to normal prior to his fall.

Obama, the candidate, seemed to understand well the need for economic reform, while Obama, the president seems to have become a defender of the status quo, continuing the course set by bank bailout the Bush administration.

The old adage that he who pays the band decided the music is effective in this field, says Nobel laureate in economics. The financial sector has paid music in both parties: Republican and Democrat and therefore decides to dance music.

The extensive treatise on political economy of more than four pages criticizes the position of the Austrian school popularly known as neoliberal. The author claims that the last time a country tried to deregulate the banking business was Chile during the Pinochet dictatorship and this resulted in disaster. About 30 percent of Chilean bank loans were bad and the country took a quarter century to pay the debts of this experiment.

neo Economist Keynesian proposes a new world economic order based on the "new deal" and does not apply to the globalized world, but the neoclassical model has very little to contribute to innovation.

Joseph Eugene Stiglitz was born in Indiana, USA, in 1943. He is an economist and writer. It was Nobel Prize in Economics in 2001. He taught at several American universities including Yale, Stamford and Princeton. Currently, he teaches his professorship at Columbia University. It was part of a team of economic advisers to President Bill Clinton and chief economist of the World Bank between 1997 and 2000. One of the biggest critics of so-called efficient markets of neoclassical theory of the economy. One of his most popular books is "Globalization and Its Discontents," published in 2002 in which harshly criticizes the policies of the IMF and the World Bank, accusing them of serving the great powers rather than to service economies weak which is supposed to serve.