PIMCO quotes Minsky

Bradford DeLong jbdelong at uclink.berkeley.edu
Mon Jul 8 15:25:29 PDT 2002



>Jeffrey Fisher wrote:
>
>>i just finally read (most of) this article . . .
>>
>>am i the only one reminded of the LTCM bailout? i'm thinking of his
>>suggestion of ordering banks to lend . . .
>
>This is more systemic than LTCM. LTCM was a potential break in the
>payments change; he's talking about the solvency of nonfinancial
>corporations, and how what's rational for one (balance-sheet
>rebuilding) could be ruinous collectively. This is out of the box
>stuff for bourgeois thought.
>
>Doug

But this is low Keynesianism: the paradox of thrift; the fallacy of composition; et cetera, et cetera, et cetera...

Brad DeLong



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