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Friend of Quadrant, frequent contributor and RMIT University Associate Professor of Economics Steve Kates has just published an updated edition of his book, Free Market Economics, which will be launched tonight (May 6) by former Treasurer Peter Costello.
As the author explains it:
There is the world of theory and the world of policy but how they mix is no simple matter. Most of economic theory is, or at least was, aimed at those who make policy and designed to curb natural impulses to regulate and spend.
Keynesian economics is the great exception. It says to governments that when an economy turns down, or even before it turns down, their duty is to spend to restore and maintain the level of demand.
Governments able to show fiscal restraint in the face of Keynesian advisors are rare. Non-Keynesian texts explaining why governments should show restraint are, in our own day and age, equally rare.
For a taste of the book Joe Hockey might have done well to keep close at hand while preparing his upcoming budget, follow the link below.
