Tuesday, March 18, 2008

Quote of the day

From: http://globaleconomicanalysis.blogspot.com/2008/03/liquidity-traps-myth-and-reality.html

Throwing money at the problem simply encourages more overcapacity, weakens the currency, and causes prices of necessities like oil to rise while not doing a thing for wages. If dropping money out of helicopters worked, Zimbabwe would be the greatest economic force on the planet.

Unfortunately, the Fed seems to be of the mindset that causing real, massive inflation is the way to stimulate the economy.

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