Within the Austrian school of economics, there is plenty of debate on just about everything, including definitions. But they tend to be over the target when discussing current events, something no other school can approximate. I do not think this is accidental, I think history shows bad ideas win favor from the powers that be. No problem, no powers be needed. Frank Shostak weighs in -
Some Fed officials have suggested that once the US economy gains strength it will be appropriate to reduce monetary pumping. The latest economic data seems to support the view that the US central bank is unlikely to reverse its loose monetary stance soon. The ISM manufacturing and services indexes have weakened last month whilst employment increased in March well below economists’ expectations. We suggest that the fact that the growth momentum of AMS has been declining since October 2011 implies that downward pressure on economic activity has already been set in motion. We also hold that the process of wealth generation was badly damaged by loose monetary policies of the Fed. This runs the risk of a prolonged economic slump. The best thing the Fed could do to help the economy is to do as soon as possible nothing.
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Some Fed officials have suggested that once the US economy gains strength it will be appropriate to reduce monetary pumping. The latest economic data seems to support the view that the US central bank is unlikely to reverse its loose monetary stance soon. The ISM manufacturing and services indexes have weakened last month whilst employment increased in March well below economists’ expectations. We suggest that the fact that the growth momentum of AMS has been declining since October 2011 implies that downward pressure on economic activity has already been set in motion. We also hold that the process of wealth generation was badly damaged by loose monetary policies of the Fed. This runs the risk of a prolonged economic slump. The best thing the Fed could do to help the economy is to do as soon as possible nothing.
Feel free to forward this by email to three of your friends.
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