11/8(Tue) Keynes vs Hayek (Host: Winston)

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李昰翰
YOYO member
文章: 43
註冊時間: 週一 12月 17, 2018 8:37 pm

11/8(Tue) Keynes vs Hayek (Host: Winston)

文章 李昰翰 »

Keynes vs Hayek

Dear Yoyoers,
Over the past five years, the world has been sequentially erupting several enormous events such as trade war between USA and China in 2018, COVID-19 pandemic in 2019, Russia’s invasion to Ukraine in 2022 which make an even compound severe crisis over world’s economy. What are the ripple effects stem from the mentioned events? Let’s get back to discovering two renowned economy theories for Keynesian economics and Hayek’s theory of economics, and try to find out if the theories can work out good medical prescriptions to cure up the unrest on the outlook toward world’s economy. Although we are not professional economic experts, we can still share our viewpoints and have sparking discussions on the topics.

Articles:
1. https://www.differencebetween.com/diffe ... vs-keynes/
2. https://www.investopedia.com/terms/k/ke ... nomics.asp

Films:
1.https://www.youtube.com/watch?v=d0nERTFo-Sk
2.https://www.youtube.com/watch?v=GTQnarzmTOc
3.https://www.youtube.com/watch?v=hdpbJ7cdZQw


What is Keynesian economics?
Keynesian economics was developed by British economist John Maynard Keynes. According to Keynes economic theory, higher government expenditure and low taxation result in increased demand for goods and services. This, in turn, can help the country achieve optimal economic performance, and help any economic recession. Keynesian economics harbors the thought that government intervention is essential for the economy to succeed, and it believes that the economic activity is influenced heavily by the decisions made by both the private and the public sector. Keynesian economics places government spending to be the most important in stimulating economic activity; so much so that, even if there was no public spending on goods and services or business investments, the theory states that government spending should be able to spur economic growth.

What is Hayek economics?
Hayek’s theory of economics evolved around Austrian theory of business cycles, capital and monetary theory. According to Hayek, the main concern for an economy is the manner in which human actions are coordinated. He argued that markets are unplanned and spontaneous in that markets evolved around human actions and reactions. Hayek’s theories considered the reasons as to why markets failed to coordinate human actions and plans thereby sometimes adversely affecting economic growth and people’s economic prosperity such as causing high levels of unemployment. One of the causes for this that Hayek brought to light was increase in the money supply by the central bank, which in turn increased prices and production levels that resulted in low interest rates. He argued that such artificially low interest rates could cause artificially high investment, resulting in high investment in long term projects in comparison to short term projects causing an economic boom to turn into a recession.


SESSION ONE QUESTIONS:
1.What is your understanding to Keynesian economy theory? Do you think Keynesian’s economy theory can better explain the economic activities in real world? What is the phenomenon on life which can be of adaptive occasions to direct Keynesian theory to treat economic disorders? Can you find out any historic events which use Keynesian theory as successful examples?

2.For the trade war between USA and China since 2018, what are the implications to the global economic activities? Overall speaking, how is the trade war impacting Taiwan? Is it a threat or an opportunity for Taiwan? Should Taiwan government use Keynesian economy theory to intervene economy activities toward trade war trend? What can Taiwan do?

3.Over the past three years of COVID-19 pandemic crisis, getting out of anticipation, the Taiwan economic has not plummeted like USA and power countries in Europe which especially suffered from inflation a lot. What kind of the magic powers Taiwan owned for her outstanding of economic growth over the past three years of virus crisis? Why can Taiwan still enjoy economy growth under such arduous circumstance?

4.Facing the COVID-19 turbulence, Taiwan government carried out two times of vouchers, 3 times and 5 times of vouchers, which aimed to revitalize the domestic economy, especially for travel and hospitality industries. Can the voucher policies be classified to the application examples of Keynesian theory? Does it successfully rise up the economy? Do you support such policies?



SESSION TWO QUESTIONS:
5.What is your understanding to Hayek economy theory? Do you think Hayek’s economy theory can better explain the economic activities in real world? Can you find out any historic events which use Hayek theory as successful examples?

6.Getting back to the financial crisis in 2008, US infused huge amount of dollars to the market which led to drop down interest rate a lot. Is this an application example of Hayek theory to real world? Getting back to 2022, US has adopted a reverse approach by raising up interest rate a lot toward inflation crisis. What are the reasons for FED to take quite different financial policies respectively toward economic crisis in 2008 and 2022. What was the purpose for conducting the weak dollars policy in 2008? By contrast, does the strong dollars policy in 2022 benefit for US import or export? Why?

7.Over the past three years, the semiconductor industry has enjoyed great profits which outstandingly stood out of many declining industries heavily punched down by the COVID pandemic. What a sudden turning out that more and more over-stocks news released to semiconductor market, what happens to such kind of rapid changing from a severe shortage of chips supply to an over-supply of chips condition, so called order cliff in electronic industry out of expectation broken out since Q3, 2022? A dark cloud loomed over economy hardship has been underway and extended pessimistic prospect toward 2023. Can either Hayek economy theory or Keynesian economy theory resolve such difficulties? Can you identify root causes for such reverse market changing toward chip foundry industry?

8.Recently Biden administration has tightened the restriction on preventing chip technology from flowing to China. Is it good or bad news for Taiwan’s semiconductor industry? Should Taiwan administration adopt Keynesian economy theory or Hayek’s economy theory facing such trend of deepening technology war? Do you think Taiwan government should take intervention to the market or respect free market mechanism?




.......................................................................................
Agenda:
7:00 ~ 7:10pm Opening Remarks / Newcomer’s Self-introduction / Grouping
(Session I)
7:10 ~ 7:50pm Discussion Session (40 mins)
7:50 ~ 8:10pm Summarization (20 mins)
8:10 ~ 8:15pm Regrouping / Taking a 5 Minutes Break (Intermission)
(Session II)
8:05 ~ 8:45pm Discussion Session (40 mins)
8:45 ~ 8:55pm Summarization (10 mins)
8:55 ~ 9:00pm Concluding Remarks / Announcements

Meeting Date: As shown on the Subject Line
Meeting Time: 7:00pm – 9:00pm

Online meeting:
* ZOOM ID: 875 5256 1813
* ZOOM PASSCODE: loveyoyo
* ZOOM LINK: https://tinyurl.com/yoyobest

No on-site meeting for Tuesday night!!!

Important Notes:
1. We advise participants to print out the discussion questions and bring them to the meeting for reference. As for the supporting articles, feel free to print them out, as well, according to your preference.
2. We suggest that participants read the articles and think about the questions in advance.
3. Newcomers should prepare a two-to-three minute self-introduction in English to deliver when called upon by the host before the start of the discussion. The host may also ask you to give brief feedback about the meeting at the conclusion of the meeting.
4. We conduct the entire meeting in English. All participants should have at least moderate English-conversation skills and be able to articulate your ideas for each discussion question.
5. We welcome newcomers and other guests to attend the meetings and join the discussion freely twice (including on-site and online meetings). After that, we hope you will consider becoming a YoYo English Club member. We charge a NT$1,500 (NT$1,000 for students) lifetime membership fee.
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miller
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文章: 43
註冊時間: 週三 5月 09, 2018 6:17 pm

Re: 11/8(Tue) Keynes vs Hayek (Host: Winston)

文章 miller »

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