Xiaonian the: Federal Reserve monetary policy to acknowledge all the great mistake. Since 2001, monetary policy, Taylor rule, a long-term benchmark interest rate is too loose and wide departure from the lower left, the capital of American homes, businesses and financial institutions over – the grace to encourage lending is low. “” The process of deleveraging crisis, Americans have to reduce your debt, what we are talking about. Before complete recovery of “deleveraging” brought in a temporary fiscal stimulus is not sustainable, a government to stop burning money, the economy has fallen.
“Korea Wind”: Keynes is to solve the problem, why that moment is still very popular, then?
Xiaonian that: the current situation and the 20 to 30 years of the last century “Great Depression” of the very first “Great Depression” and similar people are in panic, the Wall Street crash, and you can save the situation and are looking for just the government. A mental and Western intellectuals today, it’s the same problem, but the market itself, government intervention is required. While some people in despair, hope and a role model to the Soviet Union, under the Soviet economic planning system “is to avoid the Great Depression.” Some people are better, go ahead and study the propagation of Nazi Germany, the totalitarian government of the German economy recovered quickly because of the strong intervention. In response to this trend, Hayek is “to serfdom,” as he, for immediate emergency alerts and a market economy in the world and abandon the principles of the road wrote the risk. German intellectuals of the upcoming Western countries and how to actually do, they found that Hayek was right, unconstrained by a strong government of war and slavery, but harm the government’s strong contribution to the Keynesian sense.