Sunday, June 24, 2012

Who said it? (No cheating)

"Today, persistent low interest rates encourage firms that do invest to use capital-intensive technologies... In this way, the Fed may still be contributing to a jobless recovery, when we finally do recover."

Sounds awfully Austrian, doesn't it? (that last sentence would probably be put differently if it were an Austrian)

3 comments:

  1. Presumably it's a Keynesian saying this, and your point is, "Aha! See, we're not idiots guys." But I would just say, "Why are you so sure that more Fed easing is the answer, if once in a blue moon some Keynesian acknowledges these points?"

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    1. Well, actually my take is that he should be careful about these sorts of claims about interest rates - is near zero really "low" compared to the market clearing interest rate? I'm not convinced it is, in which case I'd take issue with him.

      Ya, it is a Keynesian that I was surprised to hear sounding so Austrian.

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  2. If the statement is true, then we should just blow it out, letting people print money with their own printers, for we know, as a matter of technology, that within x years (20-50 est) there will be no work, and no "economy" for all work will be done by robots that can build and repair themselves?

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