Tag Archives: liquidity trap

Why Deficits Don’t Matter.

by Bob VeresOctober 29, 2013 The whole idea that we should control the deficit at all is costing our nation trillions of dollars in lost output. The result is lost income, savings, wealth and prosperity. “As a society, we don’t … Continue reading

Posted in banks, bonds, commentary, economics, financial crises, fiscal policy, growth, inflation/deflation, interest rates, money supply, outlook, politics | Tagged , , , , , , , , , , , , , , , , , , , , | Leave a comment

Federal Debt and Deficit Reduction are Junk Economics.

Deficit cutting is still, precisely, the wrong economic policy prescription in the current weak economy of high unemployment. Whether raising taxes or cutting spending, the effect is the same. It may reduce the deficit but it also removes stimulus in … Continue reading

Posted in asset allocation, banks, bonds, commentary, economics, financial crises, fiscal policy, growth, inflation/deflation, interest rates, money supply, outlook, politics | Tagged , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Japan to take civilian control of monetary policy and to coordinate with fiscal policy.

We’re soon to get a pretty good real world test of the stimulative effectiveness of MMT’s deficit and monetary theories. by Tim DuyDecember 25, 2012 The potential exists for groundbreaking changes in Japanese economic policy – and I sense that … Continue reading

Posted in banks, bonds, commentary, currencies, economics, fiscal policy, growth, inflation/deflation, interest rates, money supply | Tagged , , , , , , , , , , | Leave a comment

More Monetary Stimulus with New Targets.

Bloomberg NewsDecember 13, 2012 Chairman Ben S. Bernanke moved the Federal Reserve further into uncharted policy territory in combating joblessness by tying the bank’s interest-rate outlook to unemployment and inflation, while committing to an even faster expansion of the central … Continue reading

Posted in asset allocation, banks, bonds, commentary, inflation/deflation, interest rates, money supply, outlook | Tagged , , , , , , , , , | Leave a comment

Why Monetary Stimulus Can’t Fix a Balance Sheet Recession…

… and Why Cutting the Deficit Will Make it Worse.   Economist Richard Koo explains why monetary easing by the Fed is innefectual and why deficit cutting by the Congress and individual States will make it worse. He expains why … Continue reading

Posted in economics, financial crises, interest rates, money supply | Tagged , , , , , , , , , , , , , , , , | Leave a comment

Credit Contraction and Inflation? Don’t Think So.

by Matt Busigin http://macrofugue.com/the-fight-against-credit-contraction?c=1 Much has been said about the Federal Reserve’s balance sheet expansion, “money printing,” and commodity inflation. The simple fact remains, however, that all of these billions of dollars haven’t even been able to replace the money … Continue reading

Posted in banks, economics, inflation/deflation, money supply | Tagged , , , , , , , , , | Leave a comment