Not ad nauseam. There's a floor, an equilibrium where countercyclical forces take over. (Besides: many people agreeing with this sentiment maintain that growth _per se_ is already an existential threat to human existence.)
Inflation is a tax on saving which encourages malinvestment "bubbles" that fail catastrophically.
Monetary policy addresses them by creating ever more money to encourage ever more synthetic growth. Once debt service threatens to consume the sovereign budget, monetary tightening ceases to be politically viable.
Not for nothing, we appear to be living in the Keynesian "long run."
bngybmgrglflps|4 years ago
Inflation is a tax on saving which encourages malinvestment "bubbles" that fail catastrophically.
Monetary policy addresses them by creating ever more money to encourage ever more synthetic growth. Once debt service threatens to consume the sovereign budget, monetary tightening ceases to be politically viable.
Not for nothing, we appear to be living in the Keynesian "long run."
whb07|4 years ago
“Hey Joe, I know you like that $1000 machine, but are you willing to buy a better one for $500?”
“Gee, no thanks!”