Thursday, November 11, 2010

Change the Rules

We use dogmatic, open-ended rules of thumb in our economic thinking, rules of thumb like "Printing money causes inflation" and "Credit use is good for growth."

These two rules of thumb together created the problems in our economy. We always restrict the quantity of money, and we always use more credit.

It is time to change the rules.

1 comment:

The Arthurian said...

I find a comparable thought in a recent billy blog: "...the US federal deficit is unsustainably high. In relation to what?"