Countries can’t inflate their way out of recession
Adam Smith Institute
by Tom Papworth
04/23/09
Somewhere in the hour-long spectacle that was today’s Budget Statement, Alistair Darling made a very interesting claim: ‘This Government, and others, have learnt from the historic economic mistakes of the interwar period, that countries cannot deflate their way out of recession.’ This is a fascinating statement for two reasons. Firstly, because history proves no such thing. In fact, I can think of very few, if any, examples where actively deflating the economy has been attempted. By comparison, inflation has been the stock response by governments across the globe for three quarters of a century, and the results have included the Winter of Discontent and Japan’s ‘Lost Decade’...
http://tinyurl.com/c9z7wl
Informant: Thomas L. Knapp
http://freepage.twoday.net/search?q=recession
http://freepage.twoday.net/search?q=Alistair+Darling
http://freepage.twoday.net/search?q=Tom+Papworth
by Tom Papworth
04/23/09
Somewhere in the hour-long spectacle that was today’s Budget Statement, Alistair Darling made a very interesting claim: ‘This Government, and others, have learnt from the historic economic mistakes of the interwar period, that countries cannot deflate their way out of recession.’ This is a fascinating statement for two reasons. Firstly, because history proves no such thing. In fact, I can think of very few, if any, examples where actively deflating the economy has been attempted. By comparison, inflation has been the stock response by governments across the globe for three quarters of a century, and the results have included the Winter of Discontent and Japan’s ‘Lost Decade’...
http://tinyurl.com/c9z7wl
Informant: Thomas L. Knapp
http://freepage.twoday.net/search?q=recession
http://freepage.twoday.net/search?q=Alistair+Darling
http://freepage.twoday.net/search?q=Tom+Papworth
rudkla - 24. Apr, 10:14
