Tuesday, November 16, 2010

What do Conservative Economics think of QE2?

Besides the atrocious letter in the WSJ against QE2, I do wonder what the other conservative economists think about it. What does N dot Greg Mankiw think, for example? Nary a word on his blog. It will be interesting to see how many line up with crazies...

2 comments:

  1. I'm not the first to note this, but prices of houses and interest rates are not included in our measures of consumer inflation. If we include these, the situation in Europe and the USA seems even more deflationary (though in the USA the largest decline in house prices may be over - however, 'undershooting' of prices may occur). In the Netherlands, people are actually postponing the decision to buy a house as they expect house prices to fall further. In't that a 'textbook example' of consumer reactions to deflation? Imnsho, asset prices should be included in the decision. And the debauchment of the dollar? Long overdue!

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