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