Swiss Economicblogs.org
Basic recession economics says that when you end up with too much of some commodity, too much inventory that you can’t otherwise sell, you have to cut the price in order to move it. Discounting is a feature of those times. What about a monetary panic? This might sound weird, but same thing. In other words, if you have too much cash (stay with me) and not enough takers, then the price you’ll accept to lend that cash must fall to accommodate the lack of demand. How...
Read More »Low Rates As Chaos, Not ‘Stimulus’
