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Europe is a “stimulus” drug addict now. Milton Friedman would have thought so.
Sunday, June 17, 2012 19:43
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Here is a short and crisp attack by Friedman on Keynesian myths that have destroyed, first Japan, next America, and now Europe.
Australia has – very fortunately – pulled out of the HUGELY NEGATIVE spiral of Keynesian “stimulus” (drug hit). Hence there is hope for Australian productivity and long term growth.
Friedman hasn't mentioned the most heinous thing about a “stimulus”, namely, that it amounts to THEFT from the poorest, whose savings undergo devaluation.
It is not necessary that inflation will emerge immediately upon increasing money supply. But it MUST, ultimately. There is simply no other possibility. And when it does, it will hit the savings of the poorest the most.
Read more at Sanjeev Sabhlok’s Occasional Blog-Economics
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