Tag Archives: cheap credit
Salting the Economy to Death
One popular delusion that won’t seem to go away is the notion that policy makers can stimulate robust economic growth by setting interest rates artificially low. The general theory is that cheap credit compels individuals and businesses to borrow more … Continue reading
Posted in Inflation, MN Gordon
Tagged cheap credit, economic stimulus, federal reserve, interest rates, san joaquin valley
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Monetary Activism
Sometime in the 1950s twentieth century economist Hyman Minsky developed his Financial Instability Hypothesis. At the cornerstone, is the notion that economic stability breeds instability. How’s that possible? As Minsky observed, financial crisis follow periods of economic prosperity. These periods … Continue reading
Posted in Inflation, MN Gordon
Tagged cheap credit, federal reserve, hyman minsky, monetary policy, risk, stability breeds instability
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