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Strategies & Market Trends : The coming US dollar crisis
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To: Tommaso who wrote (18845)3/19/2009 6:19:56 PM
From: Sea Otter  Read Replies (1) of 71445
 
The argument is that all this new money won't be inflationary, inasmuch as it will merely substitute for the dearth of private credit. The two will somewhat cancel each other out in terms of monetary impact. And once private credit comes back the Fed will ratchet down the money supply accordingly.

That's the Party Line, is it not?

I can't credibly appraise this argument, as I fell asleep in my econ class at Stanford. My instincts tell me that there may be some logic to it as a matter of pure theory, but will be impossible to execute in practice. Sort of like nuclear fusion.
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