Reaction of keynes and friesman Assignment Example | Topics and Well Written Essays - 250 words

Reaction of keynes and friesman - Assignment ExampleI think this solution is only short term as Keynes seldom considers the measures and approaches other(a) developed countries would take to curb the effect of inflation in the United States on their markets and economies (Conerly 2012).Keynes position relies on jobs, concern rates, and liquidity. When an economic turmoil exacerbates, creating jobs and lower-rankingering interest rates cannot prevent a full-blown depression. Lowering interest rates to attract foreign investment can only go as low as 0%, which was the case in the United States in mid-2009 (Conerly 2012). From there, the Keynesian approach proves ineffective. On the other hand, Friedmans position entails stabilizing the purchasing force out of the private sector and collective households across the country. I agree with Friedman that the private sector plays a bigger role in stabilizing an economy than governance policy during an economic crisis. In addition, the g overnment is often unreliable when the interests of businesses are not in line with those of the government (Conerly