“In August last year, Dr. Krugman proved how little he has learned since March 2008 in chastising others for lack of growth. Writing as usual in the New York Times on what he called the Folly of Prudence, he said, ‘We’ve been living with low-rate, depression economics for 8 years now — and key players are still acting as if they’ve learned nothing.’
Yep. He thinks ‘austerity’ is holding everything back, when in truth it’s all the stuff he didn’t recognize a decade ago and still doesn’t now.
In very general terms, the monetary system continues on unable to meet the modest demands placed on it by even the most modest of growth trends (forgetting recovery from the immense contraction). It, combined with other hidden monetary elements, qualifies in every way for Milton Friedman’s interest rate fallacy. The consistency of T-bills, bond rates, ‘secular stagnation’, etc., is breathtaking in that despite all that the world economy still lost a decade anyway and remains facing the very real prospects for another one. “
Thursday, August 03, 2017
Is Another Lost Decade Ahead?