Hyperinflation is that transition period when a paper money is clearly failing as a store of value but has not yet died as a medium of exchange. This blog is to look at this and any other interesting economic issues. Vincent Cate
Tuesday, April 5, 2016
Keynesian Leaches
There was a time when doctors would prescribe leaches for certain health problems. When it did not work they often just increased the dose, with more leaches. Often the leaches would kill the patient. The Keynesian economists today do a similar thing. They prescribe money creation. When that does not work, they prescribe an increased dosage of money creation. Eventually the patient, the economy, dies.
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