A summarization of the article is
that the writer is criticizing supporters of Keynesian economics who believe
that the Federal Reserve is being too tight with money. They believe that the
Fed is being too tight despite the fact that the Fed has been pumping free money
for the past 80 months.
Some things that I had to research in order to understand
the article is first what the author was referring to when he said “Keynesian
Chicken Littles.” Keynesian economics is the view that in the short run,
economic output is strongly influenced by total spending the economy. As of
currently, Keynesians think the Federal Reserve is being too tight. Tight
Monetary Policy is a course of action where the Fed constricts spending in an
economy that is growing too quickly and to curb inflation.
Obviously, the
author thinks the Keynesians are talking nonsense and I agree. I don’t think
that any efforts made by the Fed have changed our economy by a noticeable significant
amount. There are predictions that printing more money will help the economy
but I don’t understand why we should do that. Yes, in the short run things
might go well but in the long-run is what we should focus on because inflation
always seems to come with an inevitable crash.
Other than the main idea, I
really wasn’t able to understand most of the article. Even when I looked up
certain economic terms, I still couldn’t manage to make sense of some of the
things the author would reference towards. The figures of tables and graphs
were also hard for me to interpret.
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