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Central banks and automatic stabilizers are what have avoided a bigger crisis this time. That doesn't mean that monetary policy is the right solution. The righ
by RobertoG 11y ago
Central banks and automatic stabilizers are what have avoided a bigger crisis this time.
That doesn't mean that monetary policy is the right solution. The right solution is fiscal policy (government spending) but this is not happening because politics is dominated by crazy ideas about austerity and fiscal balances.
- sbardle 11y agoI'm not so sure. Central banks helped cause the 08 crisis by lowering interest rates after 9/11 and encouraging a housing bubble. Their response to the 08 crisis (bailing out the banks, ultra-low interest rates, QE) may have laid the ground for an even bigger crisis further down the road. All this is good news for alternative currencies IMO.