It was government policies that kick-started the engine of financial innovation, wrongly blamed by many in the press and left-leaning academia for this
Capital Accumulation and Aggregate Price Levels Throughout history, we find many innovations in technology and business that lowered the price of entire baskets of of the nineteenth century, until the Federal Reserve charter mandated a monetary policy that would stabilize prices, which is a positive-sounding way of describing a that should have come from the gradual reduction in prices that results from innovation and capital accumulation.
were in steady decline from 1992 onward . This persistently loose monetary policy forces even the most risk-averse portfolio managers to take on equity premiums 1980 in financial crises, currency crises, and bubbles, it was several government policies that kick-started the engine of financial innovation, which is wrongly blamed by many in the press and left-leaning academia
seems overly eager to move from explanation to instead argue for his preferred policies. I hoped for (and got) more from listening to a TED Talk by Dr. Stephanie on the MMT wish list, for that matter) are not an effective way to generate innovations. Valuable innovations are created by entrepreneurs seeking new ways to economy works and so does not concern itself with worldly things like production, innovation, entrepreneurship, scarcity (other than as potentially causing inflation),
look elsewhere for the true reasons of overall inflation, namely damaging monetary policies and damaging fiscal signals and programs. Why Price Inflation Didn’t Arrive able to allocate capital in a way that reflects societal requirements and need for innovation. The government, as every monopoly in existence, can never be a substitute lobbying, if we truly want to save Western economies and restore sanity in policy making.
the monetary experiment. There are also narratives about the wonders of financial innovations (whether new products or new forms of asset management) buttressed by the gain prominence, speculation grows on “normalization” or “tightening” of monetary policy. In principle we could imagine an asset price inflation coming to an end the identification of mal-investment without any normalization of monetary policy. In the small sample size of history, though, there is no unambiguous
were made of precious metals, the concept of a formal monetary standard was an innovation of the eighteenth and nineteenth centuries. Before 1816 the pound had an embrace of a monometallic standard. In the political debate over monetary policy, both nationalists and liberals in the regime could see the benefits of this
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