Azazello1313 Posted November 17, 2010 Share Posted November 17, 2010 this is pretty good, key quote... I don’t think conservatives realized it at the time, but I (and a few other quasi-monetarists) had the strongest argument against fiscal stimulus in late 2008 and early 2009. We said; “Yes, stimulus is needed, but monetary stimulus is much more effective and less costly than deficit spending.” At the time, most on the left argued that monetary stimulus wouldn’t work if rates were near zero. Well rates are still near zero, and many of those same liberals are now insisting that the Fed is responsible for fixing the AD shortfall. They’ve come over to our side. Just as in earlier decades they gradually accepted the Friedman/Schwartz argument that monetary policy errors caused the Great Contraction of 1929-33, not the failures of capitalism. If conservatives keep predicting inflation that the financial markets don’t see, Krugamn will continue to rub their faces in failed predictions. If we adopt the view that monetary policy is the appropriate way to keep NGDP growing at an adequate rate, then we win and Krugman loses. So which will it be? Quote Link to comment Share on other sites More sharing options...
Duchess Jack Posted November 17, 2010 Share Posted November 17, 2010 this is pretty good, key quote... I still don't understand why the government didn't use a lot of the money they were pumping into the economy to pay off a few months worth of mortgages which were in trouble (thus bailing out the banks - AND - helping the public) instead of just bailing out the banks (helping folk who make ten figure bonuses). Quote Link to comment Share on other sites More sharing options...
redrumjuice Posted November 17, 2010 Share Posted November 17, 2010 to pay off a few months worth of mortgages which were in trouble Dude... I don't agree with bailing out anyone. Dead beats or the banks. Quote Link to comment Share on other sites More sharing options...
Duchess Jack Posted November 17, 2010 Share Posted November 17, 2010 Dude... I don't agree with bailing out anyone. Dead beats or the banks. I can't say that I do either, but between the two, it seems like the better idea. I mean, folk are still losing their houses, the banks are still being stingy and bank CEOs are still getting retarded bonuses. Quote Link to comment Share on other sites More sharing options...
Avernus Posted November 17, 2010 Share Posted November 17, 2010 I can't say that I do either, but between the two, it seems like the better idea. I mean, folk are still losing their houses, the banks are still being stingy and bank CEOs are still getting retarded bonuses. maybe this "stimulus" money is going to the wrong place.....just a hunch.. Quote Link to comment Share on other sites More sharing options...
Caveman_Nick Posted November 17, 2010 Share Posted November 17, 2010 I think that inflation is going to be a very big issue in 2011. According to some folks I know in the industry, the Dodd-Frank bill is expected to make money much more expensive to get, and those increases costs will never affect the banks (a cost plus type provider), which means that they will be getting passed on to businesses, and built into the price of goods, etc. Apparently many business owners are borrowing like crazy right now to get ahead of those costs. Quote Link to comment Share on other sites More sharing options...
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