Quote:
Originally Posted by ChinoCoug
liberal economists like Tyler Cowen?
And don't worry about the inflation dude. The money printing is there to prop up a weak economy, not to finance the deficit. And it is being held as reserves, not being lent out to businesses. The following explanation is provided by "liberal economist" and Romney adviser Greg Mankiw.
http://www.nytimes.com/2010/01/17/bu...my/17view.html
Economics is economics, dude. |
Yes, there are explanations galore, and they make for interesting reading, but economics is a soft science, not precise.
I'm familiar with many of the explanations but that doesn't mean I buy into them all, or believe that the explanations completely explain away why things happen the way they do.
Don't worry about inflation? Whoa, brother. Inflation will make the cost of money more expensive. That will harm people borrowing. We don't have any real increase in income but having a real increase in the cost of money will be harmful.
Inflation will also affect our ability to export goods.
We see multiple problems which are not being addressed. Our treasury bills are not attractive to investors any more, despite a low interest rate. Because we will need to raise them, this will negatively affect the cost of money.
I wouldn't be surprised if we saw Carter stagflation again.
And do you really believe the reserve argument? I don't.