tag:blogger.com,1999:blog-4900303239154048192.post6539241519310118845..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: Krugman vs. Godley's "Hydraulic" Keynesianism.Unknownnoreply@blogger.comBlogger7125tag:blogger.com,1999:blog-4900303239154048192.post-65377565366915336782013-10-28T01:25:12.205-04:002013-10-28T01:25:12.205-04:00Hydraulics machine is based on the concept of the ...Hydraulics machine is based on the concept of the pascals law that if pressure is applied on fluid in a certain vessel then this pressure spreads out all over the directions in equality.<br />-------------<br /><a href="http://www.atechhydraulics.com/" rel="nofollow">http://www.atechhydraulics.com</a>Jenniferhttps://www.blogger.com/profile/18097835653424603960noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-57599289895444465502013-09-16T12:52:34.082-04:002013-09-16T12:52:34.082-04:00Tom, in Friedman "permanent income hypothesis...Tom, in Friedman "permanent income hypothesis" (and in Modigliani's "life-cycle hypothesis"), consumption and saving decisions are made by isolated individuals (or families) based on the tremendous amounts of information about the future they're assumed to have. In contrast, Duesenberry sees individual (families) as living in communities and trying to "keep up with the Joneses." Thus, if community consumption standards rise, so does individual consumption. There's also a "ratchet effect" (asymmetry), so that falling individual incomes do not translate into falling consumer spending to the extent that rising incomes lead to rising spending. In theory, both of the two theories could apply partly, with people thinking about the future _and_ worrying about their social status. Econoclasthttps://www.blogger.com/profile/08991106027036537594noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-48331868085002965632013-09-14T15:21:26.902-04:002013-09-14T15:21:26.902-04:00Would it be possible to do a post outlining the ba...Would it be possible to do a post outlining the basics of Duesenberry's theory of consumption and comparing it to Keynes's and Friedman's?Tom Geraghtyhttps://www.blogger.com/profile/08488813114208986683noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-79183198966377398422013-09-14T01:35:25.734-04:002013-09-14T01:35:25.734-04:00Sure Jim, see your point. Sure Jim, see your point. Ramananhttps://www.blogger.com/profile/11123448543333785121noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-73436546330831445332013-09-13T19:20:05.275-04:002013-09-13T19:20:05.275-04:00I didn't object to PK's labeling of Godley...I didn't object to PK's labeling of Godley as a "hydraulic" Keynesian because I see nothing wrong with being hydraulic, especially if the only alternative is to be neoclassical. And it's unclear what "hydraulic" means. Instead, I focused on the fact that PK isn't very good at the the history of economic ideas. -- Jim DevineEconoclasthttps://www.blogger.com/profile/08991106027036537594noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-78828117945374714782013-09-13T17:21:55.535-04:002013-09-13T17:21:55.535-04:00Also, while hydraulic Keynesianism is interesting ...Also, while hydraulic Keynesianism is interesting in some ways, I don't think it is right to label Godley as "hydraulic Keynesian"Ramananhttps://www.blogger.com/profile/11123448543333785121noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-55891046992923328162013-09-13T17:20:23.009-04:002013-09-13T17:20:23.009-04:00Jim Devine: "As for the failure in predicting...Jim Devine: "As for the failure in predicting inflation"<br /><br />Btw Wynne Godley's Cambridge group did predict the inflation!<br /><br />From Wynne Godley in his book:<br /><br />"We also predicted that inflation could exceed 20% if the unfortunate threshold (wage indexation) scheme really got going interactively. This was important because it was later claimed that inflation (which eventually reached 26%) was the consequence of the previous rise in the ‘money supply’, while others put it down to the rising pressure of demand the previous year "Ramananhttps://www.blogger.com/profile/11123448543333785121noreply@blogger.com