I see the Keynesian multiplier as being about a domestic government printing more money, which won’t work in the long run or maybe even the short run, rather than a real shock to the balance of trade.
And that is the short term effect, what about the medium and longer term. In macro that would be a bump in the curve and then back to the stationary trend
sorry, how do we know it isnt a keynesian multiplier? or are you just saying theres a non keynesian explanation
I see the Keynesian multiplier as being about a domestic government printing more money, which won’t work in the long run or maybe even the short run, rather than a real shock to the balance of trade.
i agree, but i thought you were saying the empirical effect wasnt a keynesian multiplier
And that is the short term effect, what about the medium and longer term. In macro that would be a bump in the curve and then back to the stationary trend