Sunday, 24 April 2011

Fed Stimulus - the wrong medicine

When economists from the pulpit of their tenured positions complain (Stimulus by Fed Is Disappointing, Economists Say, New York Times, 24 April 2011) that the policy of Quantitative Easing (aka Money Printing) has not been sufficiently forceful I would like to remind them that the policy was wrong right from the beginning. The Keynesian policies of macro economic management - pushing buttons in fiscal or monetary aggregates - give politicians and all those arguing for a powerful state tools to play with but they are not the only - or even correct - reply to problems that stem for wrong micro-economic policies in tax, employment or international trade management.

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