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10 fallacies of the Great Recession

I am getting a new (work) computer so I have been doing a bit of clean up on my old computer. While doing the clean-up I came across the following list that I apperantly did at some point.

This is 10 fallacies of the Great Recession:

1)      Low interest rates = easy monetary policy

2)      The price of money is the interest rate (credit and money is the same thing)

3)      Confusing shifts in demand and supply curves: No, lower oil prices is not helping the US economy if it is caused by a drop in global AD

4)      Competitive devaluations won’t help if everybody devalue at the same time

5)      We are in a “New Normal” – the hangover the theory of the Great Recession. We are in a balance sheet recession

6)      We are out of ammunition – interest rates are near zero so we can ease not monetary policy anymore (we need fiscal easing)

7)      The Great Recession was caused by a property market bubble

8)      Fiscal policy is a useful tool to combat the crisis

9)      Central banks are printing money like hell – we will get hyperinflation (confusing demand and supply for money)

10)   Higher inflation is bad for private consumption

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