1. stillthinking said...

Perhaps some of you have noticed that you can't link to some things as a news article. My personal comment is this;

http://www.lewrockwell.com/north/north74.html

This is a good article because although 8 odd years old, is well at ease with the subsequent financial developments of 2007-2009. Also mentions CV Myers "loans are always paid back, either by the debtor or the creditor" who during a similar debate late 70s was a deflationista in the same style of today, but Reagans recession was ultimately inflationary so he called it wrong. Certainly makes you think though because western economies skirting deflationary episodes a few times since the 70s is rarely mentioned, deflation often being regarded as a near impossibililty (Japan aside). According to this Greenspan was facing a strong deflationary threat even back then, which would explain his subsequent easy money strategy.