Bernanke’s Apoplithorismosphobia
"The key thing is that the price of producer goods has to fall faster and farther than consumer goods for the correction process to proceed."
"The key thing is that the price of producer goods has to fall faster and farther than consumer goods for the correction process to proceed."
Wall Street — especially since this financial crisis began — has been anything but a bastion of laissez-faire capitalism.
The Fed has essentially created the biggest shipment of currency ever, but the crippled banking system hasn't yet delivered it to our prison camp. When it arrives, it might be handy to have some spare smokes around to trade with.
At no point in his speech did Mr. Dudley raise the possibility that the main source of asset bubbles could be the US central bank itself.
I wonder if Paul McCulley has ever entertained the idea that massive fiscal and monetary bailouts actually retard recovery?
There are only inflationists on Capital Hill and Obama has a bigger bag of boondoggles than FDR could have ever imagined.