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Friday, January 8, 2010

A Look at Friedman & Keynes Theories Post Crisis.

Writer John Cassidy talks with Kai Ryssdal about the article he wrote for The New Yorker.

Kai Ryssdal: The recession that we are just now beginning to work our way out of has been miserable for a huge chunk of the economy. For economists, though, it's literally been a once-in-a-lifetime chance to see how some of the dominant theories in the dismal science hold up in reality.

There are, in essence, two of those theories. One based on the ideas of John Maynard Keynes. The other popularized by Nobel prize winner Milton Friedman and named after the university where he taught: the University of Chicago. The Great Recession of '08-'09 has exposed some weaknesses in Friedman's ideas. And in the most recent issue of The New Yorker magazine staff writer John Cassidy explores the decline and fall of the Chicago School of economics. When we talked I asked him if he would start with a little primer.

Read the full post at marketplace

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