03-18-2020, 11:50 AM
I am actually encouraged that we do not appear to be making the same mistakes of 1929. Flooding the private sector with "helicopter money" is a good play when the major risk is 20% unemployment (Mnuchin's comments to Republican Senators yesterday), demand shocks, and a deflationary spiral.
Steer the car away from the cliff with no guardrail, and get back to worrying about inflation later once it is even a plausible risk. The liquidity balance can always be shifted through tax policy and bond issuance in the future.
Steer the car away from the cliff with no guardrail, and get back to worrying about inflation later once it is even a plausible risk. The liquidity balance can always be shifted through tax policy and bond issuance in the future.