In the coming time I will pay tribute to the great Chuck Norris by analyzing the monetary policy implications of some well-known facts and quotes from the great hero. These “facts” all come from www.chucknorrisfacts.com
“Chuck Norris does not earn money,he prints it”
Well Chuck, so does central banks and that is why we can always avoid deflation, increase inflation and get whatever growth rate of nominal GDP we would like. But not even Chuck can increase real GDP growth in the long run by printing money. Not even Chuck can defeat the long run vertical Phillips curve.
Alex Salter
/ October 16, 2011Chuck Norris’s tears can cure monetary disequilibrium. Too bad he never cries.
Benjamin Cole
/ October 17, 2011I know there is worry about “moral hazard.” So we cannot just print money and give it to people (even though such an act would not be inflationary until we got closer to full capacity).
Still, moral hazard. When even large corporation routinely declare Chap 11 and welsh on their debts? Bank bailouts? Direct cash payments to farmers? When the founders/managers of Long Term Capital Management just walk away from their debts?
Maybe Chuck Norris has the answer for now.