[MUSIC]
Welcome to The Power of Macroeconomics.
>> Hi, I'm Peter Navarro and you may not have
been expecting your professor to pop up here, but I thought
that since we are now midway through our Power of Macroeconomics
course, it might be good to have a quick halftime meeting.
>> You may remember that in our last lecture we
left off with our history of macroeconomics in the year 1990.
>>
President George Herbert Walker Bush was facing
a deepening recession, but his new classical
advisers refused to rely on any short run Keynesian stimulus to fix the problem.
>> You'll now see in this lecture that while
President Bush's Keynesian restraint may have cost him his
re-election, his policies arguably set up the most prosperous
decade in American history, the booming 1990s, under the
administration of Bill Clinton.
>> But in this lecture, you'll also see how it
went so very wrong after the turn of the century.
>> Beginning first with the recession of 2001 and
not so very much later, the great recession of 2007.
>> So why would the American economy, and many other economies
around the globe, have such a difficult time in the twenty-first century?
>> In this pivotal lecture you will find
at least some answers to that question as we
complete our history of the warring schools of macroeconomics.