Re:Fiscal-Driven Inflation
by throw0101a on Wednesday May 19, 2021 @07:12AM
(#27207023)
> Deficit spending is not the same as QE.
While true, the European Central Bank (ECB) did raise rates at one point. Krugman (a Keynesian) sad this was a bad idea at the time, and that it would cause the recover to stall. And it did.
Because the ECB is generally run by Germans and they have an (anti-)inflation fetish, and so at the first hit of it they 'panic.
Moral of the story: listen to the Keynesian. I've been reading Krugman since ~2008, and he's been pretty right on most of the major monetary/fiscal policy points.
While true, the European Central Bank (ECB) did raise rates at one point. Krugman (a Keynesian) sad this was a bad idea at the time, and that it would cause the recover to stall. And it did.
Because the ECB is generally run by Germans and they have an (anti-)inflation fetish, and so at the first hit of it they 'panic.
Moral of the story: listen to the Keynesian. I've been reading Krugman since ~2008, and he's been pretty right on most of the major monetary/fiscal policy points.