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  • >> HOTEL CLERK: Lord Keynes! Welcome, sir. It's a pleasure.

  • >>KEYNES: The pleasure's all mine. >>CLERK: Your agenda--

  • >>KEYNES: That won't be necessary. I am the agenda. >>CLERK: [laughs]

  • >>KEYNES: Tell them I've arrived-- >>HAYEK: And then tell them I've arrived.

  • >>CLERK: And, your name is?

  • >>HAYEK: Hayek. F.A. Hayek. With an "H".

  • >>KEYNES: Freddy. (yeah) Keynes. Hey, listen, party at the Fed.

  • >>HAYEK: Already? >>KEYNES: Twenty minutes. Lobby.

  • John Maynard Keynes. F.A. Hayek.

  • >>KEYNES: Yeah, we're opposed >>HAYEK: We oppose each other philosophically

  • >>KEYNES: In the same studio

  • We've been going back and forth for a century

  • >>KEYNES: I want to steer markets

  • >>HAYEK: I want them set free

  • There's a boom and bust cycle, and good reason to fear it

  • >>HAYEK: Blame low interest rates >>KEYNES: No... it's the animal spirits

  • John Maynard Keynes wrote the book on modern macro The man you need when the economy's off track

  • Depression, recession, Now your question's in session

  • Have a seat and I'll school you in one simple lesson

  • Boom! 1929: the big crash, We didn't bounce back, economy's in the trash

  • Persistent unemployment, the result of sticky wages, Waiting for recovery? (Seriously?) That's outrageous

  • I had a real plan any fool can understand, The advice real simple: boost aggregate demand!

  • C, I, G, altogether gets to Y, Keep that total growing, watch the economy fly

  • We've been going back and forth for a century

  • >>KEYNES: I want to steer markets

  • >>HAYEK: I want them set free

  • There's a boom and bust cycle, and good reason to fear it.

  • >>HAYEK: Blame low interest rates >>KEYNES: No... it's the animal spirits

  • You see it's all about spending, Hear the register cha-ching

  • Circular flow, The dough is everything

  • So if that flow is getting low, It doesn't matter the reason

  • We need more government spending, Now it's stimulus season

  • So forget about saving, Get it straight out of your head

  • Like I said, "In the long run, we're all dead"

  • Savings is destruction, that's the paradox of thrift, Don't keep money in your pocket or that growth will never lift, because

  • Business is driven by the animal spirits, The bull and the bear and there's reasons to fear

  • It's effects on capital investment, income, and growth That's why the state should fill the gap, with stimulus both

  • The monetary and the fiscal, they're equally correct Public works, digging ditches, war has the same effect

  • Even a broken window helps the glass man have some wealth The multiplier driving higher the economy’s health

  • And if the Central Bank’s interest rate policy tanks A liquidity trap, that new money’s stuck in the banks!

  • Deficits could be the cure, you been looking for Let the spending soar, now that you know the score

  • My General Theory’s made quite an impression [a revolution] I transformed the econ profession

  • You know me, modesty, still I’m taking a bow Say it loud, say it proud, were all Keynesians now

  • Weve been goinback and forth for a century

  • >>KEYNES: I want to steer markets,

  • >>HAYEK: I want them set free

  • There’s a boom and bust cycle and good reason to fear it

  • >>KEYNES: I made my case, Freddie H Listen up , Can you hear it?

  • >>HAYEK: I’ll begin in broad strokes, just like my friend Keynes His theory conceals the mechanics of change

  • That simple equation, too much aggregation Ignores human action and motivation

  • And yet it continues as a justification For bailouts and payoffs by pols with machinations

  • You provide them with cover to sell us a free lunch Then all that were left with is debt, and a bunch

  • If youre living high on that cheap credit hog Don’t look for cure from the hair of the dog

  • Real savings come first if you want to invest The market coordinates time with interest

  • Your focus on spending is pushing on thread In the long run, my friend, it’s your theory that’s dead

  • So sorry there, buddy, if that sounds like invective Prepare to get schooled in my Austrian perspective

  • Weve been going back and forth for a century

  • >>KEYNES: I want to steer markets, >>HAYEK: I want them set free

  • There’s a boom and bust cycle and good reason to fear it

  • >>HAYEK: Blame low interest rates. >>KEYNES: Noit’s the animal spirits

  • The place you should study isn’t the bust It’s the boom that should make you feel leery, that’s the thrust

  • Of my theory, the capital structure is key. Malinvestments wreck the economy

  • The boom gets started with an expansion of credit The Fed sets rates low, are you starting to get it?

  • That new money is confused for real loanable funds But it’s just inflation that’s driving the ones

  • Who invest in new projects like housing construction The boom plants the seeds for its future destruction

  • The savings aren’t real, consumption’s up too And the grasping for resources reveals there’s too few

  • So the boom turns to bust as the interest rates rise With the costs of production, price signals were lies

  • The boom was a binge that’s a matter of fact Now its devalued capital that makes up the slack.

  • Whether it’s the late twenties or two thousand and five Booming bad investments, seems like they’d thrive

  • You must save to invest, don’t use the printing press Or a bust will surely follow, an economy depressed

  • Your so-calledstimuluswill make things even worse It’s just more of the same, more incentives perversed

  • And that credit crunch ain’t a liquidity trap Just a broke banking system, I’m done, that’s a wrap.

  • Weve been goinback and forth for a century

  • >>KEYNES: I want to steer markets, >>HAYEK: I want them set free

  • There’s a boom and bust cycle and good reason to fear it

  • >>HAYEK: Blame low interest rates. >>KEYNES: No it’s the animal spirits

>> HOTEL CLERK: Lord Keynes! Welcome, sir. It's a pleasure.

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B1 hayek bust set free steer fear interest

'Fear the Boom and Bust' a Hayek vs. Keynes Rap Anthem

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    林明樺 posted on 2013/03/22
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