Clarifying to See Better
A stupid analogy because I cannot think of a better one right now is that when you first heat butter it is milky looking and then starts to bubble and until the bubbling stops you cannot see the bottom of the pan. This morning I saw the bottom of a couple pans. The first one was thanks to a post over on Naked Capitalism where Yves Smith writes about one of the Right's favorite boobs and the left's Economic policy leader, Paul Krugman. The really interesting part of this post was the distinction between fiscal and monetary policy . Basically, Krugman and Summers argue in a NY Times article , for a couple things: First that since it is impossible to balance government spending we must inflate our way out of the budgetary mess we are in, and; Second, since there is no Real economic growth at this time, it makes sense to create economic bubbles. You should read the NY Times article Secular Stagnation, Coalmines, Bubbles, and Larry Summers so you know I did not make this up. B