Keynes vs. Hayek: Government Intervention and Economic Crises
Keynes vs. Hayek: The Economic Debate
John Maynard Keynes (1883–1946): The Interventionist
Keynes, a British economist, is considered a foundational figure in modern macroeconomics. He advocated for interventionist government policy, utilizing fiscal and monetary measures to mitigate the adverse effects of recessions and depressions.
The Rise and Resurgence of Keynesian Thought
- Western economies widely adopted Keynes’s ideas during and after World War II, especially throughout the 1950s and 1960s.
Comprehensive Analysis of Public Policy Formulation and Evaluation
Defining Public Policy and Its Core Elements
Public policy refers to a deliberate course of action adopted and pursued by a government or public authority to solve societal problems or achieve specific goals. It is expressed in the form of laws, regulations, decisions, and actions.
Key Elements of Public Policy
- Government-Centric: Only policies formulated by governmental institutions are considered public policies.
- Intentional Action: Public policy is not accidental but planned and purposeful.
- Problem-
Event Management, Strategy, and Organizational Structure
Types of Organized Acts and Events
1. Private Acts
Organized for a particular group, these acts do not transmit information to the general society. They are categorized into two types:
- Private Corporate Acts: Organized by companies.
- Family Private Acts: Related to the private life of the organizing entity.
2. Official Acts
Depending on the organizers, acts are classified as:
- Unofficial Acts: Organized by a private person or entity.
- Official Acts: Organized by the Crown, government, or commissions.
Subcategories
Read MoreInvestment Valuation Methods and Risk Management Principles
1. Zero Coupon Bonds (ZCBs) Fundamentals
Zero Coupon Bonds (ZCBs) are debt instruments that do not pay any periodic interest. They are issued at a discount and redeemed at face value upon maturity. The investor’s return is the difference between the purchase price and the redemption value.
For example, a ₹1,000 bond issued at ₹700 yields ₹300 profit at maturity. The price is calculated using the present value formula:
P = F / (1+r)n
Where P = price, F = face value, r = rate of return, and n
Read MoreStrategic Management Process: Competitive Analysis & Value
1. Introduction to Strategic Analysis
Strategic analysis involves assessing the company’s competitive capacity and meeting management requirements. This includes analyzing potential environmental changes, resources, and capabilities.
2. Environmental Analysis
Environmental analysis evaluates the impact of the external environment on the company’s mission and overall results.
2.1 Analysis of the Global Environment
This involves assessing the competitive business environment and the specific factors that
Read MoreBusiness Ethics, Financial Integrity, and Corporate Governance
Session 01: Ethics and Financial Reporting
HSBC Scandal: Tax Evasion and Money Laundering
- 2007: HSBC employee Hervé Falciani leaked data showing the bank helped clients evade taxes and launder money.
- USA: 400 clients had $13 billion in secret accounts to avoid paying taxes.
- 2012: HSBC paid $1.2 billion in fines to settle charges in the U.S.
- Bank’s Response: Promised to improve policies and prevent future fraud.
The Importance of Ethics in Financial Reporting
- Financial reports are only useful if they are