call it politically induced
pro cyclical macro paralysis
"We can argue endlessly about whether unconventional monetary policy could do the trick if only the Fed
did it on a truly huge scale"
". the fact is that the Fed hasn’t ever been willing,
or felt that it had sufficient political room,
to do that experiment"
"the political economy of policy turns out to make an effective fiscal response to depression very difficult."
politics trumps the samuelsonian synthesis
"we need “macroprudential” policies "
"regulations and taxes "
"designed to limit the risk of crisis"
"even during good years"
"we now know that we can’t count on
an effective cleanup when crisis strikes."
pk means mostly hog tie the FIRE SECTOR
" I don’t just mean banking regulation...
the logic of this argument calls for policies
discourage leverage in general,
capital controls to limit foreign borrowing,
if we go this route
put a permanent governor
on our credit system
our engine of corporate expansion
and that in turn will lead
to not just more but
much much more
or so I suspect
irony here ?
politics scotching macro
propose some even less politically plausible remedies
remedies corporate amerika defeated in ...well 1896
What’s more, you have to ask why, if markets are imperfect enough to generate the massive waste we’ve seen since 2008, we should believe that they get everything else right. I’ve always considered myself a free-market Keynesian — basically, a believer in Samuelson’s synthesis. But I’m far less sure of that position than I used to be.