Lawrence Klein: Policy

Lawrence Klein was American economist. Explore interesting quotes on policy.
Lawrence Klein: 30   quotes 0   likes

“I believe that monetary policy has a chronic defect. It is asymmetric—it works better in restraining an economy than in stimulating an economy.”

Lawrence Klein

"Keynsianism Again: Interview with Lawrence Klein", Challenge (May-June 2001)

“People say monetary policy is easy and quick to implement. It can even be done overnight on the telephone, they say fiscal policy drags out in political and congressional debate in our country. It might take months to implement. But the point is that once fiscal policy is implemented, it might go to work much faster than monetary policy.”

Lawrence Klein

"Keynsianism Again: Interview with Lawrence Klein", Challenge (May-June 2001)

People , Country

“It is my firm belief that the only satisfactory test of economics is the ability to predict, and in crucial predictive situations such as reconversion after World War II, the settlement of the Korean War, the settlement of the Vietnam War, the abrupt economic policy switch of the Nixon Administration in August 1972, the oil shock of 1973 (forecast of a world-wide succession by LINK), the recession of 1990. In these crucial periods, econometric models outperformed other approaches, yet there is considerable room for improvement, and that is precisely what is being examined in development of high-frequency models that aim to forecast the economy, every week, every fortnight, or every month, depending on the degree of fineness of the information flow.”

Lawrence Klein
War , World , Success , Dependency

“In the past few years there has grown up a large group of young economists who have accepted the theoretical doctrines of the Keynesian Revolution and who have come into national prominence through their support of an economic policy of full employment.”

Lawrence Klein

The Keynesian Revolution. Vol. 19. New York: Macmillan, 1947/66. p. 156.

Support , Past

“Balancing fiscal and monetary policies is a problem. If you do just one thing, it is not necessarily enough—neither monetary policy alone nor fiscal policy alone, and neither tax cuts nor expenditure increases alone. You need to mix policy. By having the right balance, you can get high employment and stable prices.”

Lawrence Klein

"Keynsianism Again: Interview with Lawrence Klein", Challenge (May-June 2001)

Problem

“There are many reasons there was higher inflation in the 1970s. But that is a complicated story that deals with much more than tax policies.”

Lawrence Klein

"Keynsianism Again: Interview with Lawrence Klein", Challenge (May-June 2001)

“You can lead a horse to water, but you cannot make him drink. Or monetary policy is pulling on a string when the economy is strong. That works. But when the economy is weak and you are cutting interest rates, it can be like pushing on a string. It does not work as well.”

Lawrence Klein

"Keynsianism Again: Interview with Lawrence Klein", Challenge (May-June 2001)

Drink , Strong , Water , Horse