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This is a long post, mostly filled with things that are either irrelevant to what I said or obviously wrong. But the basic place where it disagrees with Keynes
by aaronsw 17y ago
This is a long post, mostly filled with things that are either irrelevant to what I said or obviously wrong. But the basic place where it disagrees with Keynes is that it adopts the old-time monetarist view that printing money always "debases" the currency. This seems intuitive, but it's been proven just wrong. During the period I mention when we kept interest rates low, the economy grew steadily. When monetarist targeting was tried (under Volcker), we got a huge recession. The recent problem wasn't caused by low interest rates but a housing bubble. If Greenspan had simply given a speech pointing out the bubble instead of repeatedly denying it, it could have been averted.