Msg. 05608 of 54959 (This msg. is a reply to
05607 by
Cactus Flower)
Jump:
Hi CF, please help me decipher this. "Indeed, not all recessions call for fiscal stimulus; it’s the special conditions of the liquidity trap that make it essential now — which is why the Bush deficits, run under non-liquidity trap conditions, say nothing at all about the desirability of deficits now." I'm having trouble w/ his use of double negatives. QE1 & 2 put in a bunch of liquidity, and interest rates are nearly at all time lows. Corps have greatly improved balance sheets. What are the "special conditions of the liquidity trap." I'm missing some jargon or something. Tia
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