Largely because (a) the injections functioned differently last time as it was primarily a financial seizure, not a real one; (c) the real assets which did deflate -RE- are the very ones which have since most risen in price (“inflated”); (d) intl division of labour then undamaged
Somewhat risible to say no fiscal response last time, even if this one is shaping up to dwarf it. That’s just #Keynesian dinosaurs trying to say only their Master’s nostrums can work.
Worry is, we redo the 30s: lacklustre growth as too big a Boondoggle state exploiting its edge.
Worry is, we redo the 30s: lacklustre growth as too big a Boondoggle state exploiting its edge.
The state runs only the softest of soft budgets, is the most wasteful, least productive, most monolithic, least innovative of spenders. Backed up by a compliant #centralbank -monetary ‘authority’ is now a joke!- that implies lots of (misdirected) demand for not much extra supply
Furthermore, after the #GFC, regulators were strangling banks in layers of conflicting & costly regulation, thus damping the CBs’ influence.
Now, those banks (in better shape, too, Stateside, at least) are being urged to ignore those regs & get out there and lend.
Now, those banks (in better shape, too, Stateside, at least) are being urged to ignore those regs & get out there and lend.
A few more dollars put in the hands of hair salons and tube-welders and a few less in those of #hedgefunds punting on #Tesla and those good, ole #Cantillon effects are going to be felt in a wholly different area this time around.
#Deflation? Unlikely!
#Deflation? Unlikely!
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