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.
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