Have macroeconomists misdiagnosed the economic crisis?

dtan1e · Mar 10, 2011

Quote from morganist:

They do waste a lot of money.

In relation to aggregate demand control. For example imagine that instead of interest rate rises to control inflation they made people save more for a pension. This would reduce prices and help plug the pension shortfall too.

There can be benefits from negative situations you just have to be creative. Anyway this is getting away from the topic.

The point I am making is the action to bailout the banks only deals with the effects of default not the existing over lending.

In short it is just a matter of time before the inflexibility in the banking system creates more defaults and the banks will need a bailout again.

given the sh*t that gov'ts do with your pensions and u want people to contribute more, thats why i don't have a high opinion of economists

morganist · Mar 10, 2011

Quote from dtan1e:

given the sh*t that gov'ts do with your pensions and u want people to contribute more, thats why i don't have a high opinion of economists

Not state pensions. Private pensions. I agree about state pensions. I think that people won't get them.

Martinghoul · Mar 10, 2011

Quote from morganist:
I think you are wrong.

OK.

morganist · Mar 10, 2011

Quote from Martinghoul:

OK.

You like your one word responses don't you. What did you think of view of the interest rate?

Kassz007 · Mar 10, 2011

Quote from morganist:

For example imagine that instead of interest rate rises to control inflation they made people save more for a pension. This would reduce prices and help plug the pension shortfall too.

How do you propose forcing people to save for a pension? Do you think the public would react positively to the government forcing them to do something with their money?

morganist · Mar 10, 2011

Quote from Kassz007:

How do you propose forcing people to save for a pension? Do you think the public would react positively to the government forcing them to do something with their money?

No different to an interest rate rise or a tax rise. Only this way they get the money back.

jueco2005 · Mar 10, 2011

Quote from dtan1e:

given the sh*t that gov'ts do with your pensions and u want people to contribute more, thats why i don't have a high opinion of economists

Define economists

jueco2005 · Mar 10, 2011

Quote from morganist:

No different to an interest rate rise or a tax rise. Only this way they get the money back.

I disagree on your diagnosis & prescriptions. They are very unreal and seem very fictitious.

morganist · Mar 10, 2011

Quote from jueco2005:

I disagree on your diagnosis & prescriptions. They are very unreal and seem very fictitious.

What of the post. Or of aggregate demand control?

Kassz007 · Mar 10, 2011

Quote from morganist:

No different to an interest rate rise or a tax rise. Only this way they get the money back.

No different from a tax hike but it is different from an interest rate rise. People have a choice whether or not to borrow money, and how much.