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Take the Greeks. They had lots of heady dudes. We already can read what they said. At least the ones that lived long enough to publish. But what if most of the really smart ones started getting complex systems mostly figured out, then got confronted by that evil bitch Medusa and said something like “I don’t like your hair” and BAM – turned to stone. I think that’s why there are so many Greek statues.
airtreatmentinc.com With this single sentence you have shown why your understanding of the Great Recession is completely wrongheaded. The conditional statement "...if [money] can get into the productive economy" tells us all we need to know. Apparently it took awhile for you to realize that the economy was in a recession and the nominal rate was at the ZLB. What? You thought that Bernanke just wanted to expand the money supply for the hell of it? The liquidity trap at the ZLB is at the heart of the problem, not just some little, perhaps inconsequential, piece of information that you forgot to take into account. You worried about inflation because your model was (and still is) completely wrong. Instead of going through all kinds of mental gymnastics to salvage what's left of a half-baked Austrian theory of economics, why not admit that a Keynesian (even an Old School Keynesian) framework got it right?
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