Atilla
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Interesting article and never heard it put this way before.
What Friedman got wrong about the Great Depression cost us during the Great Recession
This velocity stuff is the same as confidence which is the same as expectations theory imo. When people feel uncertain and anxious about the future they will not borrow even if interest rates are negative. When people feel 'irrational exuberance' as Mr Greenspan puts it, they'll even borrow if they are American Ninja's, whilst the biggest and best banks, who will lend to them because they are marvellous at regulating them selves. :cheesy:
This is my understanding of the free capitalist self regulated markets. :idea:
But hang on a minute - Bill Clinton coerced them into doing it
What Friedman got wrong about the Great Depression cost us during the Great Recession
This velocity stuff is the same as confidence which is the same as expectations theory imo. When people feel uncertain and anxious about the future they will not borrow even if interest rates are negative. When people feel 'irrational exuberance' as Mr Greenspan puts it, they'll even borrow if they are American Ninja's, whilst the biggest and best banks, who will lend to them because they are marvellous at regulating them selves. :cheesy:
This is my understanding of the free capitalist self regulated markets. :idea:
But hang on a minute - Bill Clinton coerced them into doing it
