Re: Monetary Policy

[Doug Henwood <dhenwood@xxxxxxxxx>]

Alex Izurieta wrote:

> In conclusion, it all points, day by day, into a direction that confirms the
> analysis deployed in the "Implosion ..." paper and elsewhere (e.g. Dean
> Baker had an insightful presentation during the URPE Summer school). On the
> other hand, it looks to me that there is a lot of people out there who would
> (perhaps) agree but *will not* acknowledge the seriousness of the situation
> to avoid making matters worse precisely at the moment in which policymakers
> are trying to sell the image that their recipes are being effective...

So where are you going with this? At URPE, you seemed to hold up
Britain in the early 90s as a kind of worst case scenario. In 1991,
British GDP was off 1.5%, the only fully negative year. Politically,
the Tories were disgraced, and the left purged from the Labour Party.

Is this an implosion? Or are you expecting something worse?

Doug