Posted by WARREN MOSLER on November 28th, 2009
“Under a paper-money system, a determined government can always generate higher spending and hence positive inflation.”
- Ben Bernanke
It also has to know which buttons to press.
QE and lower interest rates are not the buttons for that job.
The button is the budget deficit, and they seem categorically against pressing it due to deficit myths.
Any continuing shortage of agg demand and high unemployment is entirely self inflicted.