The Long Wave Revisited

[Carl Remick]

Thought this was an interesting quote from today's Wall Street Journal
article, "Many Economists Think Japan Is in a 'Liquidity Trap,' And
Breaking Out Will Require More Than Cutting Rates":  "One reason the
world has gone so long without a liquidity trap, says [Berkeley economic
historian Barry] Eichengreen, is the tight financial regulation that
followed the Great Depression, controls that have since been eased
around the world.  'The possibility of a large-scale banking crisis was
suppressed for decades after World War II,' he says.  'We've reaped many
of the benefits of liberalization, but those benefits come with a dark
side, and we're now seeing that in Japan.'"

Carl Remick