Here’s the note about tonight’s economic discussion from our friends at the Auckland Uni Econ Group:
This week, we start taking a look at the boom and bust cycle, which is said to be a natural feature of mature economies.
But before we know how things go wrong, we need to know how they go right.
So we’ll start by discussing how economies grow, contrasting the growth theory of the classical school, and of Friedrich Hayek with that of the Chicago school economists, of whom Milton Friedman was the best known.
What does growth look like? What exactly grows? And what’s the difference between growth and progress—and how do the two schools differ on this and other related questions?
Then we’ll take a look at why economies crash: Why bubbles burst, why booms turn to bust, why growth turns to capital consumption, why QE turns into a “stimulus trap.”
And how exactly did Hayek and Keynes differ on what causes and continues downturn.
Date: Tonight, Thursday, 26 September
Location: Room 215, Level Two, Business School
Don’t miss this discussion, which should help integrate a lot of the material we’ve looked at over recent sessions.
I look forward to seeing you there!