Christopher Lingle has excellent article in Mint particularly it is important to note the following:
- “In the current climate of global economic uncertainty, central bankers are creating vast amounts of paper money from thin air to pump into the global economy.
- central bankers are perpetrating and perpetuating the problems they claim to be seeking to avoid.
- In the current setting, interest rates in the
and US should be much higher than their present low levels at near zero. Japan
- In other words, investment depends more upon spending rather than upon increased savings.
- As a modern proponent of the liquidity trap, Paul Krugman is as confused and confusing as Keynes. Krugman suggests that an economy caught in a liquidity trap will slide into deflation. But he then states that deflation can push an economy into a liquidity trap. Like Keynes, he seems to like to have it both ways”.
Whereas T.N. Srinivasan who is Samuel C. Park Jr. Professor of Economics at