“Everybody missed it?” Why the Mainstream Fails to Understand Recessions – Hal Snarr – Mises Daily

Despite the unprecedented fiscal and monetary action taken by the Bush and Obama administrations, which pushed the per capita budget deficit to more than twice the previous record, and the Fed, which quadrupled its balance sheet,[3] the economy continues to be stuck in a deep recessionary gap. Instead of acknowledging the failure of these actions, policy makers have doubled down. As the Fed continues to print money to buy securities directly from Treasury and hold rates near zero, asset bubbles are reflating,[4] excess reserves have exploded, and bad economic news pushes stock markets ever higher.[5] With the pedal pushed to the metal, economists surveyed by the National Association for Business Economics in 2012 said they wanted current fiscal or monetary policy to continue.[6] A year later, economists in that same survey said monetary policy was about right.[7]

via Why the Mainstream Fails to Understand Recessions – Hal Snarr – Mises Daily.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.