Monday, January 20, 2014

Adam Smith Institute Research Director Calls for Money Printing

Prashanth Perumal emails: Quite some "libertarian".

 Sam Bowman, Research Director at the Adam Smith Institute, has written a letter to the Financial Times calling for the introduction of a nominal spending target in the euro zone. This is from Sam’s letter:
…While supply-side reforms are usually helpful and fiscal integration may help some eurozone states, Europe’s main problem is monetary.
Nominal spending has collapsed in the eurozone since 2008 and is still well below its pre-crisis trend level. As a result, Europe’s unemployed face a problem of musical chairs: too many jobseekers chasing too little money.
The eurozone’s best hope is for the European Central Bank to pursue a more expansionary monetary policy to raise nominal spending in the eurozone to its pre-crisis trend level, and commit to a nominal spending target thereafter.
Monetary chaos is the source of Europe’s woes: only monetary stability will overcome them.
Of course. this is complete Keynesian-type thinking, which flies in the face of supply and demand economics and, further, ignores  the market distortions caused by central bank money printing.

(Via The Market Monetarist)


  1. “The best way to control the opposition is to lead it ourselves.”
    Vladimir Ilyich Lenin

  2. Anyone who listens to this GOD!

  3. Ha, exactly what Irving Fischer was saying after the market crashed in 1929. All these fancy new "theories" and the conclusion is, and will always be, "print more money". Very dismal, indeed.

    1. LOL! Those fucking morons just will never learn, eh? They just keep trying the same fucking thing over and over and over and expect a different result. People always want to double down on stupidity instead of thinking, "Hmmm...maybe that doesn't work?" DUH!!

      Amazing isn't it?