A Keynesian Corner
Here is my recent Townhall piece. As always, skim the comments. Aren't these people supposed to be Rush Limbaugh fans and support the free market? Man.
posted by Bob Murphy @ 6:16 PM
4 Comments
Crash Landing
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Sunday, January 27, 2008
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4 Comments:
"The idea seems to be that if we all just ignore the recession, it will get bored and go away."
Great line!
Nice article.
"I find it hard to believe that banks, borrowing from sovereign wealth funds around the world and accessing the Federal Reserve's newest Term Auction Facility, would be in a financial position to lend freely from new savings."
Maybe I misinterpret this statement, but isn't this ignoring that whole fractional reserve thing? Theoretically there's nothing wrong with a fractional reserve requirement. Historically, on the other hand...well, we're all about to see how bad it can get, aren't we?
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