Sunday, October 19, 2008

Keynes is Back!

With governments taking the unprecedented move of bailing out large banks responsible for the financial mess worldwide, it seems like Milton Friedman's laissez-faire economics will be taking a back seat. It does seem like the government has to intervene when markets fail and avert a systemic risk.

I have serious doubts however, that the Keynesian interventionist model will work in a developing country like ours wherein the government, time and again, has proven to be highly inefficient and corrupt.

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