Gosh Barney, what's up with this. I've been a big fan of yours, more fool me it would seem, as I've watched you go up against the GOP on the cable bloviator fests. But what about this Barn?
As usual there is clearly more going on here than meets the eye!
I found the part where Rep Sherman noted that, yes Virginia, he is hearing from his constituents about 'accountability' which clearly means something different in the D.C. Village than it does out here in taxpayer land.
The Federal Reserve led an unprecedented push by central banks to flood the financial system with as many dollars as banks want, backing up government efforts to revive confidence and helping to reduce money-market rates.
The European Central Bank, the Bank of England and the Swiss National Bank will offer European banks unlimited dollar funds with maturities of seven, 28 and 84 days at fixed interest rates against ``appropriate collateral,'' the Washington-based Fed said today. The Fed had capped at $380 billion the currency it would swap with the three central banks.
Macroeconomics is about systematic fluctuations in output, employment and prices. Macroeconomics is also about social interactions between agents who do not understand very well how the world functions. As a result, they watch each other to get clues of what is going on in the world. This leads to herding and group behaviour. This social behaviour is at the core of macroeconomic fluctuations. Keynes gave this a name, “animal spirits”.
All this is absent in [Central Banks' macroeconomic models]-models where agents who understand the complexity of the world, behave in an atomistic way. There is no need to learn from others, since each individual’s brain contains the full information. Everybody understands the “Truth”.
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