Are negative interest rates and inflation the answer to all our economic problems?
Educated readers? No.
High school economics class? No.
Harvard professor and Bush advisor, Gregory Mankiw? Yes.
According to his New York Times piece, Mankiw claims and advises that negative interest rates through heavy amounts of central bank controlled inflation, would solve our economic woes.
Bob Murphy points out the fallacies in his Mises.org piece. Like any mildly studied Austrian would observe; interest rates control more than just how much people spend, but also consumption and production. And that manipulated interest rates and heavy spending got us into this mess.
To those of us who drool over Peter Schiff videos on Youtube all day, its not surprising but still scary that those in charge believe in this garbage.Published in