Unlike Keynesians, who focus on demand shocks, followers of the late Austrian economist Joseph Schumpeter view cost shocks as important potential catalysts for structural reform and industrial upgrading — both of which are needed to avoid falling into a low-growth rut in the long term. Its amazing that Josephs work is still mentioned alongside Keynes! I thought demand is more important than supply? Weird world... Sometimes we think that chicken comes before the egg and sometimes we think that the egg comes before the chicken... Cant we just accept the fact that we dont know which came first and that both are just as important?!??
Posted on: Mon, 11 Nov 2013 16:40:02 +0000