Being in Bitcoin, many of us have heard people talk about the value of hard, sound, fungible money. Books like the Bitcoin Standard and other thought leaders in the space discuss Austrian Economics vs. Keynesian. I am studying to take the Securities Industry Essentials Exam and came across the following definitions:
Principal Economic Theories
Keynesian: Theorizes that an increase in government expenditures and a decrease in taxes can prevent or repair an economic recession.
Monetarist: Theorizes that controlling the money supply and letting the market work itself out can curb inflation and is essential for a healthy economy.
Could an Austrian Economist, such as Saifedean Ammous, be called a Monetarist? Are the two terms interchangeable?
Both the economies have same basic principle that the equilibrium of Aggregate Demand and Aggregate Supply will be maintained in a longer term but they not necessarily be equal at all times and their difference will be the reason of recession or growth. Most of the people believe that Keynesian economics is better because it can marginally reduce the duration of recessions to reduce the hardships being faced by the less privileged in the economy. It is said to believe that the Keynesian economics is optimal as it's a mixture of the capitalist Idea and socialist economy as well. On the other hand, Monetarist economy believes that Market will automatically bring up the equilibrium with it's own forces. I personally feel that keynesian economy is better given that the central authority is not corrupt and actually thinks about people. Principal Economic Theories
Keynesian: Theorizes that an increase in government expenditures and a decrease in taxes can prevent or repair an economic recession.
- The government’s role is significant.
Monetarist: Theorizes that controlling the money supply and letting the market work itself out can curb inflation and is essential for a healthy economy.
- The government’s role is minimal.
Could an Austrian Economist, such as Saifedean Ammous, be called a Monetarist? Are the two terms interchangeable?