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The inflation/deflation debacle needs an interpretation from quantum mechanics...

I have an issue with this Hellasious' statement:

The silliness of policymakers the world over is that they keep acting to artificially prop up asset prices, via replacing private with public debt. That's a remedy straight out of 1930's Keynesian economics, but it won't work because it can't work.

The first sentence is true - the governments are indeed uber-activist in propping asset prices. But how Keynesian is that?! The key direction of Keynesian government activism is completely different. I would even ask, did Keynes substantially care about asset prices at all in the 30s?  

by das monde on Wed Oct 8th, 2008 at 01:39:12 AM EST

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