Note that I had to expand to a full browser, to see the chart… Please click the link to see the complete article.
07 January 2013
Please notice that the CPI really ‘gets some legs’ when Nixon closed the gold window and released the modern monetary theory from its next to last restraint, the bond vigilantes being the last thin blue line.
And below that a quote on the modern monetary system, in which I detect the root of Paul Krugman’s confusion about money.
To his credit, Krugman does recognize the liquidity trap, which sets him head and shoulders apart from the Austerians. He just does not understand the markets and how they work in practice rather than theory, and the absolutely compelling need for reform. But that puts him in with most regulators, central bankers, and the herd of academic economists.