Tag Archives: cheap credit

Salting the Economy to Death

Posted on November 27, 2015 by MN Gordon

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 →

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Monetary Activism

Posted on June 6, 2014 by MN Gordon

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 →

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