but once out of the liquidity trap.....
" People in my camp have repeated until we’re blue in the face that the case for fiscal expansion is very specific to circumstance — it’s desirable when you’re in a liquidity trap, and only when you’re in a liquidity trap"
only when you’re in a liquidity trap
only when you’re in a liquidity trap
only when you’re in a liquidity trap
elsewise PAULNIK ?
use credit policy
ie rely on the FED
translation
wall street can veto any macro policy
enter the confidence fairy
aka wall street wally
dbt
his loyal agent
the fed open market committee
the real bond vigilantes !
kalecki :
"In current discussions of these problems there emerges time and again the conception of counteracting the slump by stimulating private investment. This may be done by lowering the rate of interest, by the reduction of income tax, or by subsidizing private investment directly in this or another form. That such a scheme should be attractive to business is not surprising. The entrepreneur remains the medium through which the intervention is conducted. If he does not feel confidence in the political situation, he will not be bribed into investment "
so what remains ??
small bizz ?
truman had this right
"banks don't loan to shops that need the money "
hence..... zoink
what's left ?
if lending standards permit
mass usury
mostly thru the lot bubble game
and auto paper
collateral baby !!!
if the market value of millions of McShit jobmites
"human capital "
is too volitle
to safely handle a bigger load of debt service ......
well then corporate america names its terms
recovery held hostage
now add the notion of finite fiscal deficit "space"
and no action on an over valued currency
snail rate recovery and a dull drifting job market
