Wednesday, Oct 22, 2008
Scary similarity between Japan's and UK answers to crisis
The Ludwig von Mises Institute: Explaining Japan's Recession
This is al old article (2002) that may have already been posted here in the past - if so bare with me please.
Really worth a good read because unlike recent articles, this was written long before things started to go wrong in US and UK and long before rescue plans were drawn.
It makes the relevance of this piece even more striking and could well confirm that the future of UK is not bright at all.
I am looking forward to reading your comments!
Posted by arnaud @ 11:00 AM (152 views) Add Comment
2 Comments
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1. landofconfusion said...
Third paragraph down from the subtitle "The Monetarist Explanation and Solution":
"Much of the stimulus that reduced rates could provide has not been realized because the banking community has been increasing its liquidity instead of increasing its lending. Many banks have bad loans with collateral now worth only 60–80 percent of their value when the loans were made. Some banks are merging, and others have been nationalized. Such problems have contributed to the ineffectiveness of monetary policy."
Sound familiar?
2. planning4acrash said...
Thanks for this. Yes, Kenesian economics are dud, and the Austrian school has the moral high ground. Most economic papers bring out "financial experts". Mises bring out the PHD's.
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