Trichet should have sought the advice of economists in the Modern Money Theory camp. By taking the unusual (for economists) step of actually including money and banks in their models, they predicted this crisis. They also have the remedies to end the entirely unnecessary recession in the real economy which has followed the shenanigans in the finance sector.
He should have read Warren Mosler's "Seven Deadly Innocent Frauds of Economic Policy" (free online) - a fascinating layman's introduction. Then he could have listened to Wynne Godley, James Galbraith, Mosler, Randall Wray, Bill Mitchell, et al.
(Also, for many years Steve Keen has been producing non-equilibrium Minsky models using engineering system-dynamics techniques.)
Remember folks :
decreasing government debt = decreasing private savings!
Economics in Denial
Trichet should have sought the advice of economists in the Modern Money Theory camp. By taking the unusual (for economists) step of actually including money and banks in their models, they predicted this crisis. They also have the remedies to end the entirely unnecessary recession in the real economy which has followed the shenanigans in the finance sector.
He should have read Warren Mosler's "Seven Deadly Innocent Frauds of Economic Policy" (free online) - a fascinating layman's introduction. Then he could have listened to Wynne Godley, James Galbraith, Mosler, Randall Wray, Bill Mitchell, et al.
(Also, for many years Steve Keen has been producing non-equilibrium Minsky models using engineering system-dynamics techniques.)
Remember folks :
decreasing government debt = decreasing private savings!