Update On The Keynes Investment Multiplier As A Divider
Written by Dan Lieberman, Alternativeinsight
British economist John Maynard Keynes transferred Richard Kahn’s employment multiplier into the concept of an investment multiplier. Others used the same formula to arrive at a Gross Domestic Product (GDP) multiplier. Portrayed by Keynesian followers as an advantage for government deficit spending and featured as a significant advance in economic thought for determining public policy, the ‘multiplier” could be misunderstood and not deliver the benefits it promises.
Source: http://econintersect.com/pages/analysis/analysis.php?post=201905242325
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