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Blimey, Murphaloon also doesn’t know his monetary history

When asked what respectable government had used QE in the past, could it not be argued that the US federal reserve used a form of it in the 30’s/40’s to get out of the great depression?

Richard Murphy says:
September 17 2015 at 7:51 pm

And Japan in the 30s

No, the complaint is that the Fed didn’t loosen monetary policy in the 30s.

And Japan used helicopter money, not infrastructure investment.


9 thoughts on “Blimey, Murphaloon also doesn’t know his monetary history”

  1. I was always under the impression that the New Deal was a form of PQE, because it was “investing” in infrastructure like dams and roads and stuff. It had a marginal effect, as it was the war that really re-started the US economy.

    Also didn’t the Japanese get out of their economic difficulties by, like, invading places ?

  2. BiA

    The New Deal also included the WPA, didn’t it, by which the government funded painters and theatrical companies etc to tour the mid – West bringing art to the people. Bizarrely, in practice it meant the US government funding the Communist Party to set up theatre groups. It took WW2 to drag the economy out of the slump.

  3. Isn’t it a bit of a myth that FDR came along and started all this public spending after Hoover being a tight arse? Hoover did spend a lot building a big old dam afterall.

  4. The new deal wasn’t PQE or QE really – it was debt financed. Money supply was also allowed to increase by the dropping of the gold standard and allowing the USD to trade freely.

    It’s a bit of a stretch to say that this was in any way like PQE.

  5. VP – thank you very much, now you mention him I can vaguely remember reading about him many years ago. So the lesson there is not to feed the addict. Once one is back on an even keel stop printing money.

    Tyler – yes sorry you’re right insofar as the New Deal was profligate spending based on debt ( a situation remedied by British gold later on ). But it’s aims were the same as these maniacs’ – invent something to invest in, even though it’s really useless.

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