Monthly Archives: February 2012
I recently came across a terrific Bloomberg On The Economy podcast with James Sweeney and Carl Lantz on “shadow money” — assets which are used as the equivalent of money during the snowball of the asset bubble / artificial boom. … Continue reading
(htlm link problems will be fixed when I am able to troubleshoot the issue) A central part of Hayek’s macroeconomics has not gotten enough attention (although it has http://hayekcenter.org/?p=2954 has not been completely ignored; see also http://zerohedge.blogspot.com/2009/05/chasing-shadow-of-money.html In several places … Continue reading
From Brian Doherty.
“If I were responsible for the monetary policy of a country I would certainly try to prevent a threatening deflation, that is, an absolute decrease in the stream of incomes, by all suitable means, and would announce that I intended … Continue reading
“The direct effect of a bursting bubble on measured output is zero. Nor, by the way, is a fall in asset prices counted as a decline in the capital stock, which is in principle measured in physical terms.” — Paul Krugman
“It does not follow [from the fact that a disequilibrium generating inflation cannot be allowed to expand forever] that we should not endeavour to stop a real deflation when it threatens to set in. Although I do not regard deflation … Continue reading