Does Politics Makes Policymakers a Little Keynesian?

The transcript discusses Robert Skidelsky's views on Keynesianism, highlighting how politics often leads policymakers to adopt Keynesian principles. It explores debates on infrastructure spending, questioning whether it is a Keynesian program or common sense. The conversation also touches on economic predictions and the role of economists, referencing debates between Paul Krugman and John Cochran, and the impact of monetary policy at the zero lower bound.

What is a key reason why politicians often adopt Keynesian policies, according to the transcript?

• They are influenced by academic economists.

• Keynesian policies are always successful.

• Voters have limited tolerance for economic suffering.

• It is mandated by international agreements.

What is the main point of contention between Paul Krugman and John Cochran regarding infrastructure spending?

• The role of private companies in infrastructure.

• The environmental impact of infrastructure projects.

• If it is a Keynesian strategy or just practical.

• Whether it should be funded by taxes or loans.

According to the transcript, what did the founding fathers grant the government the right to do?

• Regulate international trade.

• Set tax rates.

• Build postal roads.

• Control the banking system.

What is Paul Krugman's view on monetary policy at the zero lower bound?

• It is highly effective.

• It should be avoided.

• It has little to no impact.

• It is the only solution.

What shift is expected in the Federal Reserve with the new governors in 2015?

• No significant change.

• A more dovish approach.

• A focus on international policies.

• A more hawkish approach.