Fed cuts rates; crisis over?

Brad De Long delong at econ.Berkeley.EDU
Sun Oct 18 12:58:02 PDT 1998

>No kidding, it's sadomonetarism at its worst. Going from concessional rates
>to a premium to market rates, and shortening the repayment period from 10
>years to 2 1/2, is a blood-from-a-turnip approach. Right-wing opposition to
>the IMF takes pretty cruel form in practice.

Right-wing opposition to the IMF takes a pretty cruel form in *theory*. The blood-from-a-turnip isn't a result of shortfalls in implementation, it's the whole *point.*

The point of the right-wing critique of the IMF is that episodes of speculation *should* be followed by deep depressions--and that it is immoral to attempt to alleviate the depression that follows speculation.

Brad De:pmg

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