A R J Turgot and Quantitative Easing
In the aftermath of the 2007 financial crisis, various central banks around the world have embarked on various policies to which they have given different names like quantitative easing, operation twist, LTRO, economic stimulus etc. etc. If you tear the linguistic veil surrounding these policies, then, you will find that, these policies are nothing but creation of money out of thin air i.e., inflation. Today's bankrupt mainstream economics profession, especially Keynesianism, believes that by simply printing truck load of money governments can get economies out of recession. They simply don't bother to understand that why there is this recession in the first place, and whatever explanations they offer are all wooly-minded and basically no explanations at all e.g., Keynesian 'animal spirit' argument. US Federal Reserve chairman Ben Bernanke is an epitome of this line of thinking and policy making. Despite repeated failures of his money printing policies, he is trying the...