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\nAlternative Theories of Economic Growth and Inflation [Segment 8]\n

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\n\nPublisher:\n\nInstitute for New Economic Thinking\n\n\n
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\nTaught by John SmithinAssisted by Fredrick ZhouThere are two alternative views about how to promote economic growth. We develop two generic growth equations, each including the trade balance, the primary budget deficit, and the domestic...\nTaught by John Smithin
Assisted by Fredrick Zhou

There are two alternative views about how to promote economic growth. We develop two generic growth equations, each including the trade balance, the primary budget deficit, and the domestic investment/savings balance, to explain the underlying arguments. The first illustrates a “Keynes’s-type” theory, focusing on demand growth. This validates the idea that fiscal expansion leads to growth, that investment drives saving (the “paradox of thrift”) and that a trade surplus leads to growth (“monetary mercantalism”). The second approach leads to a “classics-type” theory, stressing capital accumulation and supply. However, this yields seriously anomalous results, and does not provide a solid foundation for the classical theories of trade, saving, and public finance. There are also multiple theories of inflation, those descended from the quantity theory, from Wicksell, and also various theories of “cost push” or “conflict” inflation. If money is endogenous there is plenty of scope for the latter. Also the parameters of both the money demand and (endogenous) money supply functions must be relevant. These are literally measures of “liquidity preference” - on both sides of the money market.
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Resource Details

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Media Length
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20:43
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Grade
Higher Ed
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Subjects
Social Studies & History
3 more...
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Media Type
Instructional Videos
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Source:
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\nNew Economic Thinking\n\n
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Date
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2016
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Language
English
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Audiences
For Teacher Use
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Usage Permissions
Fine Print: Educational Use
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Concepts

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economic growth, growth rate, government spending, trade, governments, sharing
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video, camera phone, video phone, free, upload, public finance, marginal propensity, mark levoir, capacity utilization, alternative views, micro founded, essential features, real gdp, trade balance, lower case, post keynesians, barter exchange, growth occurs, real world, good thing, increase growth, case, rate, theory, world, savings, growth, thing, increase, discussion
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Video is ad-free
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