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.
Ian B
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.
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.
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.