Die Self-Regulerende Ekonomie

The Self-Regulating Economy

Arnold 9 pp. 182 - 199

1
 Klassieke Ekonome
Classical Economists

Adam Smith
David Ricardo

Jean-Baptiste Say
2
 Klassieke ekonome en die Wet van Say /
Classical Economists and Say’s Law p178

Die Wet van Say / Say’s Law: Aanbod skep sy eie vraag /
Supply creates its own demand

AS = AD

Wet van Say impliseer dat: / Say’s law implies that:

daar nie ‘n algemene oor- of onderproduksie van goedere kan
wees nie / there can be neither a general overproduction nor
underproduction of goods
 Klassieke ekonome en die Wet van Say /
Classical Economists and Say’s Law

• Die Wet van Say geld nog steeds in ‘n geldekonomie

waar individue somtyds minder bestee as hul volle
inkome. / Say’s Law still holds in a money economy,
where individuals sometimes spend less than their full
income.
• Hierdie argument is gedeeltelik gebaseer op die
aanname van buigsame rentekoerse. / This argument
was partly based on the assumption of interest rate
flexibility.

4
 Dus / Thus

• Aanpasbare rentekoerse (i) / Flexible

interest rates (i)
– i pas aan sodat S = I oftewel C↓ ⇒ S↑ ⇒ I↑ / i adjusts
so that S = I i.e that C↓ ⇒ S↑ ⇒ I↑
– Pryse en lone pas aan om ewewig te verseker / Prices
and wages adjust to ensure equilibrium

5
 Klassieke siening van die kredietmark /
Classical view of the credit marketExhibit 1: P 183

6
 Klassieke Ekonome en aanpasbare rentekoerse /
Classical Economists and Interest Rate Flexibility
• Vir die Wet van Say om geldig te wees in ‘n geldekonomie
moet gespaarde fondse aanleiding gee tot ‘n gelyke
hoeveelheid geïnvesteerde fondse. / For Say’s Law to hold
in a money economy, funds saved must give rise to an
equal amount of funds invested.
• Rentekoerse pas aan om besparing en investering gelyk te
maak. / Interest rates will adjust to equate saving and
investment.
• Enige  in C en dus  in S, sal lei tot ‘n gelyke  in I. /
Any  in C and consequent  in S, will be matched by an
equal  in I.
7
Klassieke siening van die Wet van Say in ‘n Geldekonomie /
Classical view of Say’s Law in a Money economy
Exhibit 2: p 184

8
 Klassieke siening van Pryse en Lone /
Classical Economists on Prices and Wages

• Klassieke ekonome glo dat meeste, indien nie alle,

markte mededingend is. / Classical economists
believed most, if not all, markets are competitive.
• Pryse en lone sal vinnig aanpas vir enige oorskotte of
tekorte. Ewewig sal vinnig herstel word. / Prices and
wages will adjust quickly to any surpluses or
shortages. Equilibrium will be quickly reestablished.
Drie toestande van die Ekonomie /
Three states of the Economy

10
 Reële BBP en Natuurlike reële BBP: Drie
moontlikhede / Real GDP and Natural Real GDP:
Three Possibilities p181
• Resessionêre gaping / Recessionary gap:

• Inflasionêre gaping / Inflationary gap:

• Langtermynewewig / Long-run equilibrium:

11
Reële BBP en Natuurlike reële BBP: 3 moontlikhede /
Real GDP and Natural real GDP: 3 possibilities
Exhibit 3: p186

12
 Arbeidsmark en die 3 toestande in die Ekonomie /
Labour Market and the 3 states of the Economy

• Resessionêre gaping / Recessionary gap:

• Inflasionêre gaping / Inflationary gap:

• Langtermynewewig / Long-run equilibrium: U = UN

13
 ‘n Vraag / A question

Hoe is dit moontlik dat U < UN? /

How can U < UN?
• Gebruik die PMK om te verduidelik / Use the PPF
to explain

–Fisiese PMK / Physical PPF

–Institusionele PMK / Institutional PPF
• Sien Figuur 4 / See Exhibit 4 p 189

14
Die Fisiese en Institusionele PMK’s /
The Physical and Institutional PPFs
Exhibit 4 p189

15
3 toestande van die Ekonomie en 2 PMK's / 3
states of the Economy and 2 PPF's
EXHIBIT 5 P190

16
Self-regulerende ekonomie: wat gebeur as ekonomie in ‘n
resessionêre gaping is? / Self-regulating economy: what
happens if economy is in a recessionary gap? Exhibit 6: p191

17
Die Selfregulerende Ekonomie /
The Self-Regulating Economy

18
Aanpassings vanuit 'n resessionêre gaping /
Adjustments from a recessionary gap

19
Self-regulerende ekonomie: wat gebeur as ekonomie in ‘n
resessionêre gaping is? / Self-regulating economy: what
happens if economy is in a recessionary gap? Exhibit 6 p 191

20
Aanpassings vanuit ‘n inflasionêre gaping /
Adjustments from an inflationary gap

21
 Self-regulerende ekonomie: wat gebeur as ekonomie in ‘n
inflasionêre gaping is? / Self-regulating economy: what happens if
economy is in an inflationary gap? Exhibit 7 p 193

22
Self-regulerende ekonomie: wat gebeur as reële BBP =
natuurlike reële BBP? / Self-regulating economy: what
happens if real GDP = natural real GDP?

23
 Die Self-regulerende Ekonomie: Opsomming /
The Self-regulating Economy: Summary p188

• Buigsame lone (en ander hulpbronpryse) speel

‘n belangrike rol. / Flexible wages (and other
resource prices) play a critical role.
• Klassieke ekonome, Nuwe Klassieke ekonome
en Monetariste glo dat die ekonomie self-
regulerend is. / Classical economists, New-
Classical economists, and Monetarists believe
the economy is self-regulating.
24
Beleidsimplikasies van die siening dat die Ekonomie
self-regulerend is / Policy Implications of the view
that the Economy is self-regulating p 194
• Laissez-faire: ‘n Openbare beleid om nie in te meng in die
mark-aktiwiteite van die ekonomie nie. Die owerheid moet
nie normale markuitkomstes aanhelp nie. / A public policy of
not interfering with market activities in the economy.
Government should not facilitate normal market outcomes.
– Die owerheid moet nie handelsbeperkings, vloerpryse en/of
prysplafonne, produkregulasie ens. afdwing nie. / Government should
not impose trade restrictions, price floors/ceilings, product regulation
etc.
• Die owerheid het wel ‘n rol te speel – byvoorbeeld in die
voorsiening van nasionale verdediging, die handhawing van
wet en orde, en die beskerming van eiendomsregte. / The
government does have a role to play though – for example,
the provision of national security, the keeping of law and 25

order and the protection of property rights.

 Laissez-faire:
Letterlike betekenis / Literal meaning
Verrykend / Enrichment
• Volgens historiese legende het die frase ontstaan tydens ‘n
vergadering in ongeveer 1680 tussen die magtige Franse
Minister van Finansies Jean-Baptiste Colbert en ‘n groep Franse
sakemanne gelei deur ‘n sekere M. Le Gendre. Toe die
geesdriftige Colbert vra hoe die Franse owerheid van diens kan
wees tot die handelaars, en te help om hul handel te bevorder,
het Le Gendre eenvouding geantwoord "Laissez-nous faire"
(“Leave us be”, lit. “Let us do”). / According to historical legend,
the phrase stems from a meeting in about 1680 between the
powerful French finance minister Jean-Baptiste Colbert and a
group of French businessmen led by a certain M. Le Gendre.
When the eager Colbert asked how the French state could be of
service to the merchants and help promote their commerce, Le
Gendre replied simply "Laissez-nous faire" ("Leave us be", lit.
"Let us do").
 Beleidsimplikasies van die siening dat die ekonomie
self-regulerend is / Policy Implications of the view
that the economy is self-regulating p 194

• Volle indiensname is die norm. / Full

employment is the norm.
• Ekonomie beweeg altyd na QN (UN) a.g.v.
aanpasbare lone en pryse. / Economy always
returns to QN (UN) due to flexible wages and
prices.

27
 Veranderinge in ‘n self-regulerende ekonomie: KT & LT /
Changes in a self-regulating economy: Short-run & Long-run
p 195

• Wat gebeur indien AD↑? / What happens if AD ↑?

• Wat gebeur indien AD↓? / What happens if AD ↓?

28
Veranderinge in ‘n self-regulerende ekonomie: KT &
LT / Changes in a self-regulating economy: SR & LR
Exhibit 8 p 195

29
 Sakesiklus makro-ekonomie / Business
Cycle Macroeconomics
Sakesiklus makro-ekonomie is die veranderinge in reële BBP met
'n vaste LRAS-kurwe / Business-cycle macroeconomics can be
described as changes in real GDP with respect to a fixed LRAS
curve
 Ekonomiese-Groei Makro-ekonomie /
Economic-Growth Macroeconomics Exhibit 9 p 197

Ekonomiese-groei makro-
ekonomie het betrekking
op regswaartse
verskuiwings van die LRAS-
kurwe. / Economic-growth
macroeconomics deals
with rightward shifts in the
LRAS curve.
 Dink hieroor… / Think about this…
• Wat sou gebeur met ‘n ekonomie in ‘n
resessionêre gaping, indien lone nie buigsaam
was nie? / What would happen to an economy
in a recessionary gap if wages were not
flexible?

32