Tuesday 24 November 2015

What Is the Free-Market Solution to a Liquidity Trap? Higher Inflation! - Equitable Growth

The problem resides in not examining appropriately the effect of money supply growth on key markets where inflation runs rampant. We have seen recovery in the equity and housing market, but we have not seen the recovery in household balance sheets that would allow for a normal yield curve. Rather, we see the economy sitting in the liquidity trap permanently and the problem building more and more ... will we survive this? probably not, and it is worse than the climate change issue.

I despair that I am the only economist that actually talks about the 'real' problem. the others receive a 'D' including our former governor of the Bank of Canada ...

http://equitablegrowth.org/what-is-the-free-market-solution-to-a-liquidity-trap-higher-inflation/

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The Internet User's Best Kept Secret

Sketches from scratches is a provocative blogspot that has grown out of the Wuh Lax experience. It is eclectic, which means that it might consider just about anything from the simple to the extremely difficult. A scratch can be something that is troubling me or a short line on paper. From a scratch comes a verbal sketch or image sketch of the issue or subject. Other sites have other stuff that should really be of interest to the broad reader. I try to develop themes, but variety often comes before depth. ... more!