What is to be done? To find an answer, listen to the markets. They are saying: borrow and spend, please. Yet those who profess faith in the magic of the markets are most determined to ignore the cry …
Contrary to conventional wisdom, fiscal policy is not exhausted. This is what Christine Lagarde, new managing director of the International Monetary Fund, argued at the Jackson Hole monetary conference last month. The need is to combine borrowing of cheap funds now with credible curbs on spending in the longer term. The need is no less for surplus countries with the ability to expand demand to do so.
It is becoming ever clearer that the developed world is making Japan’s mistake of premature retrenchment during a balance-sheet depression, but on a more dangerous – far more global – scale. Conventional wisdom is that fiscal retrenchment will lead to resurgent investment and growth. An alternative wisdom is that suffering is good. The former is foolish. The latter is immoral.
I think this photo basically sums up the source of skepticism that many on the Left have of unregulated markets (emphasis on “basic”).
- freebroccoli asked:What did you mean, that "works of Ayn Rand" are "not technically libertarian"? Or were you referring exclusively to Orwell in that remark?
Ayn Rand was personally extremely clear that she was not a libertarian. For example, she said:
[Libertarians] are not defenders of capitalism....
Bar is in two days.
I feel okay about it, but I’m still lowkey terrified. In all honesty, I don’t know how I feel. But I’ve done what I can to...
Two rich economies, relatively similar in structure, reacted very differently to the global financial shock of late 2008. In America output sank...”
- “Please have no leniency on me. To remain in prison for the rest of my life would be the greatest honor you could give me.”—
Megan Rice, the 84-year-old...
- I think that makes it the 7th 'banker' suicide in a week or so, doesn't it?
- so we finished Angel last night
Spoilers abound, obviously.
Oh my goodness I have no idea what to say. The last few episodes were all over the...
- Re: What Inflation Is
Many economists disagree with the “Austrian” definition of inflation because it lacks...