Tuesday, September 10, 2013

thomatose up date

pk v the market monetarism ????
or just
"sloppy sly " wording by PK
pk :
" lot of what we think we know about recession and recovery comes from the experience of the 70s and 80s. "
cool so far

"but"
" the recessions of that era were
very different from the recessions since."

not so
sez market monetarism.... right ?
all recessions are ultimately
monetary policy induced
intentional or unintentional
because
the causes
of all recessions
are monetary in essence
and monetary flows are ultimately the outcome of monetary policy

there are
facts agreed on :
"Each of the slumps — 1969-70, 1973-75, and the double-dip slump from 1979 to 1982 — were caused, basically,
by high interest rates imposed by the Fed to control inflation."
note the fudgicle word "basically"
but its followed by a sharply targeted
proposition
the real driver both down and then back up
was the cost /selling price / affordability
(and profit)
from new construction of housing
I suspect the MMs would stipulate the truth
of the follow pk claim
" In each case housing tanked, then bounced back when interest rates were allowed to fall again."
now the truth drawn from later fun recession facts
begin to diverge
though of course
this observation is held in common
pk "Since the mid 1980s
we’ve had the “Great Moderation,” with inflation quiescent."
but now
it cometh
now
the truth vs truthness drawn from hard facts diverge
pk "Post-moderation recessions haven’t been deliberately engineered by the Fed"
drop the word deliberately and we got a scrap underway
or so it seems
ask ski wee
and
now throw this into the ring

pk:
"( P-M recessions)... just happen
when credit bubbles
or other things get out of hand."
ie the recessions are not caused by monetary policy




anne said in reply to paine ...
PK:
"( Postmodern recessions)... just happen
when credit bubbles
or other things get out of hand."
ie the recessions are not caused by monetary policy
[ Worth developing with clarity. As for the recession of 2001, that was precisely caused by interest rate increases brought about by the Federal Reserve in 2000 and possibly James Galbraith has suggested with the intent to limit the chances of Al Gore becoming President. ]
paine said in reply to anne...
I think PK sees FED pre emption changing from output inflation acceleration to bubble busting
the word caused by for PK seems restricted to FED actions to pre empt wage push output price spirals

paine said...
my perennial nominee for neo liberal
den mother of the month
brad Delong
loves
the legacy of the late David S. Landes
I find that very easy to believe
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