Re: Central Banks and Deflation

[John Vertegaal <vertegaa@xxxxxxxxx>]

Henry,
     Your reassurances are encouraging, as given the minimal support for
my precepts and no indication that this is going to change anytime soon,
the future looked rather disheartening from my perspective.

John V


--- Original message ---

"The power that be" is running scared.  Not because they have suddenly
conceded with falsity of theories that have lead them to this sad state
of affair, but because the sad state of affair is no longer deniable.
No one I know is any more arguing that unemployment is desirable, not
even George W. Bush. And the supplyside argument has been steadily
losing both steam and converts.

There is much going on in the policy world around the world beneath the
surface.  Pk theory may seem wishy-washy to some in control of
academies, but it is precisely its wishiness that will wash. The time
fro experiment is fast approaching and the vigorous logic will come
later from data arising from the new approaches.  No economic theory can
solve all problems, but PK can and will solve the unemployment problem,
which is a lot more than monetarists were able to do for more than a
decade.  Believe me, much is happening within the seats of power.  The
establishment changes policy advisors the way mothers change diapers of
their babies, when the smell becomes noticeable.

Truth is not the issue.  Applicability is.

Henry C.K. Liu