It's almost ironic for Treasury to discuss winding down anything other than monetary stimulus; other than the tax cuts, nobody knows how much of the $500 billion in fiscal stimulus has been spent. Some estimates are as low as 5%; estimates for fraud, though, range between 5% to 10%.
Monetary Madness in a Single Chart: Hyperinflation's Just Around the Corner [View article]
We will soon find out the winner in the current debate between the monetarists and the neo Keynesians.
The former argue inflationis strictly a monetary phenomenon while the neo Keynesians argue that because of the large output gap......as measured by unemployment and capacity utiliation......the economy can absorb both fiscal and monetary stimulus with no ill effects.
And while it's premature to declare a winner, the markets and many astute investors are giving an edge to the monetarists.
What the G8 Communiqué Didn’t Say [View article]
Monetary Madness in a Single Chart: Hyperinflation's Just Around the Corner [View article]
The former argue inflationis strictly a monetary phenomenon while the neo Keynesians argue that because of the large output gap......as measured by unemployment and capacity utiliation......the economy can absorb both fiscal and monetary stimulus with no ill effects.
And while it's premature to declare a winner, the markets and many astute investors are giving an edge to the monetarists.