Sunday, March 23, 2014

Chairwoman Yellin believes monetary policy can temper the business cycle to benefit both workers and Wall Street.

Sound likes a real balancing act, doesn't it? It is. She is brilliant and knows exactly what she is doing. Rarely does anyone hear about her life long dedication of excellence in developing policy.

In self-identifying as reform-minded Keynesian she reflects not only her own priorities, but, that of former Chairman Bernanke. She is carrying out his policies to finish in six months. Six months should be no surprise to any Wall Street investor, the announcement was made at the beginning of QE3. There was a benchmark called unemployment of 6.5% of the USA.

An economic theory of total spending in the economy and its effects on output and inflation. 

Keynesian economics was developed by the British economist John Maynard Keynes during the 1930s in an attempt to understand the Great Depression.

Keynes advocated increased government expenditures and lower taxes to stimulate demand and pull the global economy out of the Depression. 

Subsequently, the term “Keynesian economics” was used to refer to the concept that optimal economic performance could be achieved – and economic slumps prevented – by influencing aggregate demand through stabilization and economic intervention policies by the government. 

Keynesian economics is considered to be a “demand-side” theory that focuses on changes in the economy over the short run.