Wednesday, October 08, 2008

The coordinated 50-bp cut isn't going to help

In fact, tell me if you have seen this before:
Act 1: some threat drives the central banker to ease money

Act 2: the easy money inflates a bubble

Act 3: the bubble bursts, and we reach new lows
Lather, rinse, repeat!

UPDATE: Greg Mankiw has a better idea.

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