L02: The Great Depression and Keynesian Macroeconomics

There are the reasons why the existing theory of economics as developed by the West is wrong. There is an impression that west has done lot of progress and we are hundred years behind them so if we want to learn economics then we have to follow the West without questioning them. It is not true because everything they are currently teaching is wrong and it is very easy to make a contribution. For example if it is asked that how does your mother, who is not brainwashed from economic theories, spend money to any lay man. Then his answer will be that she divide her budget according to needs like some portion is allocated for vegetables, meat, dressing etc. But as we have been brainwashed by economic theories that’s why we will start calculating utility maximizing bundle for the consumer although it has nothing to do with real life experience.

Macroeconomics is a very important subject as all countries are being run according to false macroeconomic theories and if we learn the right theories and learn how to apply these in real world then we can change the world. It is very big game and also has very serious consequences. First step is to have a confidence which we have lost from past three centuries. Macroeconomics is about the things that we can understand provided that we have a confidence in ourselves. Truth about macroeconomics is easy to understand in a sense that it is all about that we can observe and understand from daily life experiences as compare to understanding abstract differential equations, comparative statics and total differential etc.

Link of the Lecture: https://www.youtube.com/watch?v=lAhhdeYlH54