The Bubble Finance Cycle: What Our Keynesian School Marm Doesn’t Get, Part 2

In Part 1 of The Bubble Finance Cycle we demonstrated that a main street based wage and price spiral always proceeded recessions during the era of Lite Touch monetary policy (1951 to 1985). That happened because the Fed was perennially “behind the curve” and was therefore forced to hit the monetary brakes hard in order to rein […]