I also suspected that ultimately the Keynesian policy of flooding the financial system with liquidity would eventually trigger the upward turn of the cycle, and that when it came it would be surprisingly fast as the economy tried to recover lost ground – what I have described as a “snap-back”.
Monetarism is Keynesian now is it?
And here’s the best bit of it:
It is this nexus – technology rooted in great universities, innovative start-ups and small firms with loans collateralised against rising house prices, internationalisation via our great airports and all keyed into the buying power of locally sited multinational headquarters that is creating a new economy at a startling pace. This is happening spontaneously, independently of politicians.
Excellent, so we’ve now got even Willy Hutton saying that as long as the politicians stay out of things the market will indeed deliver growth. Good, ain’t that great.
Can we now retire Hutton as an economic commentator given that he’s just repudiated everything he’s said in the last few decades?