That said, widespread credit constraints presumably reduce the number of players who can take advantage of lower rates.
? ? ?
We can't boost the economy with more debt. Liquidity preference has changed.
Sunday, June 26, 2011
Why is Krugman saying this?
We can't boost the economy with more debt. Liquidity preference has changed.
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He says this because (at the low rates) would-be borrowers can't get loans. This can be explained as a liquidity preference of would be lenders. It's not that difficult.
Beckworth is trying to hard, because he is agenda driven, not fact driven.
What do you think liquidity preference has changed to?
Seriously, I think YOU are trying to hard as well.
Do you have Krugman derangement syndrome?
Cheers!
JzB
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