Recessions are great!

In this post I want to argue that recessions similar in nature to current one are a great opportunity, essentially because they allow governments to devalue their debt mountain and encourage investment in new infrastructure. They can do this by:
A) monetizing debt
B) imposing a 'carrying charge' on money

1 comments:

ethny said...

No doubt true Stephen, but of course one may ask, great for whom!

Out of interest, on the subject of the national debt, what are your views (if any) with regards to those such as www.positivemoney.org.uk but also who now partially include the likes of the Martin Wolf at the FT?