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Written by Brian Domitrovic
- Forbes |
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Tuesday, April 23, 2013 |
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A question has haunted the aftermath of the Great Recession: where is all the inflation? If the Federal Reserve is going to spike the money supply most massively in the context of minimal economic growth, as it has since 2008, it would seem that a severe price inflation must ensue. Yet the consumer price index has grown at merely 1.5% for the past five years.
Back in the “stagflation” era, the 1970s and early 1980s, and cued up by President Nixon’s taking the dollar off gold in 1971, the Federal Reserve printed money Read more |
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Written by Brian Domitrovic
- Forbes |
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Wednesday, April 10, 2013 |
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In 2008, Ben Bernanke’s and Paul Krugman’s star former doctoral student at Princeton, the economist Gauti B. Eggertsson, published an article in the American Economic Review, the field’s top journal, on the manifest excellence of the New Deal of the 1930s. One of the claims: “1933-1937 registered the strongest output growth (39 percent) of any four-year period in US history outside of wartime.”
The cited source for this statement was the Office of Management and Budget, which does not maintain statistics on “output gr Read more |
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Written by Brian Domitrovic
- Forbes |
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Monday, March 11, 2013 |
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Not everybody agrees on the causes of the Great Recession, but there is one verity that we all typically hold to: as the collapse really hit back in 2008, the United States stepped in big time to bail the financial system out.
Look at the charts, and you see what appears to be overwhelming evidence. A tripling of the money supply. TARP loans at $800 billion. (Nominal) interest rates lower than ever. Budget deficits past $1 trillion. All these things materialized in late 2008, just as the economy lunged into “freefall”—a Read more |
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Written by Brian Domitrovic
- Forbes |
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Wednesday, February 27, 2013 |
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The dollar—that thing the Federal Reserve has been printing like mad the last few years—is in one of the worst spells in its history, short, medium, and long-term. Against the world’s major currencies, the dollar’s rate of exchange is down 5% since the Great Recession started, 32% from the 2001 peak, and 15% from the stability achieved in the late 1980s and early 1990s.
This is not to imply that the world’s other major currencies are themselves paragons of value. Against gold, all currencies have suffered mightily. Bu Read more |
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Written by Brian Domitrovic
- Forbes |
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Monday, January 28, 2013 |
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Remember when people were saying that the old Republican ideas, the venerable supply-side reforms that first made their mark in the Ronald Reagan era of the 1980s, were no longer relevant in terms of getting us out of our rut today, on account of their already having been made policy? It was only yesterday that we heard all this—in the campaign of 2012.
Cut taxes? Done plenty over the last thirty years by Reagan, even Bill Clinton, and then George W. Bush. Roll back regulation? Done again (and we apparently saw Read more |
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