Timmy elsewhere

At the ASI.

If Scott Sumner’s right, we should say so, yes?

2 thoughts on “Timmy elsewhere”

  1. Yes indeed Tim.

    Now, as you have in past written in the Telegraph, would you like to inform Dan Hannan and James Delingpole that our counter-deflationary monetary stimulus (QE) didn’t as a fact lead to hyper-inflation and was never likely to.

  2. At this point we should consider the Great Depression of 1920. You know, the one that dumped the USA into a decade of horrific economic collapse. That one. Never heard of it? No.

    The 1920 slump was over within a year. The government drastically cut spending, rather than increasing it. The Federal Reserve did not engage in open market operations, and there was no stimulus. And there was a rapid recovery. Which nobody remembers, because although there was a short slump, no great terrible disaster happened as in the Great Depression, which activist government kept in depression from 1929 through to- if you subtract out the effects of the war- around 1947 or 48.

    And this is the problem. A successful response to a crisis- the vital government policy of inaction, beyond cutting its own spending- means that it will be forgotten, like a great storm that does not make landfall and does not destroy a city.

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