The Depression Is Not Over
All that stimulatory policies can do is redistribute real savings from wealth-productive to nonproductive activities."
All that stimulatory policies can do is redistribute real savings from wealth-productive to nonproductive activities."
Economics is about the most important and interesting drama of all — human action.
"The fact that credit booms are encouraged by derivative instruments has substantially increased the destabilizing effects of an artificial credit-expansion policy carried out by keeping the market interest rates below natural interest rates."
We should not be fooled into believing that the economy will crumble without high government spending and loose credit organization.
But unlike today, the deflationists and hard-money men had the upper hand. As a result, the depression ended rather quickly (by 1821) when confidence in currency was restored and currency once again was redeemable in specie.
Mr. Calandro not only strives to teach a method to avoid the delusion, but to attempt to profit from the resultant cleaning out when the bubble bursts.
The students' interest in the current economic crisis has served as a source of motivation for them to learn the subject well.
If Washington had done nothing at all after 9/11/01, either in domestic or foreign policy, the world would be much more peaceful and prosperous today.
"Only savings can allow for sustainable economic growth."
In real life, Keynesianism doesn't work; the government bails out the bankers and then depressions last a long time.