TheMoneyIllusion » The New York Times (and former President Bush …
Then the economy got much worse precisely because people had become worried. Self-fulfilling expectations. BTW, it is rational to be reluctant to spend if your current income is stable, but you expect it to fall very soon. … Instead, the model merely tries to explain changes, starting from a level that is assumed given. But of course the factor that explains why NGDP is currently $14 billion also will determine what NGDP is three years from now. And only monetary policy … …
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TheMoneyIllusion » The New York Times (and former President Bush …
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