"The 'liquidity trap' only is a mental constraint in the heads of central bankers."

Great line from Lars Christensen. Read the underlying facts.

Categories: Macroeconomics Monetary Policy

There were a lot of people who warned against using QE. I think most of them were not central bankers.

Also the NGDP numbers from Israel look surprisingly smooth.

Liquidity traps will be remembered as the real bills doctrine of our times, one of the great blunders in economic thought.

There’s something poetic about Israel having the only CB that understands ZLB right now. Hopefully enlightment will soon follow him to the Fed.

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COLLECTION: MACROECONOMICS