I think what we are seeing on Wall Street currently is hegemonic euphoria induced by rubbing others noses in the dirt. There probably is no real politics to this except that of greed and the hollow satisfaction of being a bully.
Sincerely, Tom
Doug Henwood wrote:
> Brad De Long wrote:
>
> >>>... So I'm wondering if the world's central bankers really *want* this
> >>deflation to run its course.<
> >>
> >>they did in 1930.
> >>
> >
> >Stan Fischer is a lot smarter than Montagu Norman... but Lauch Faircloth is
> >not.
>
> So if Stanley Fischer is so smart, why did the IMF respond to Asian
> deflation with austerity packages, and to Russian collapse with austerity
> packages? Why is Russia committed to running a budget surplus now? More
> broadly, why has the IMF been pushing deflationary policies - not just
> fiscal contraction, but the encouraging 120 poor countries to compete for
> the privilege of exporting to 20 rich ones - on the whole damn world at
> least since Mexico's 1982 default?
>
> Doug