Wednesday, November 20, 2013

Janet Yellen's Trickle Down Economics

Jeffrey Bell at the Weekly Standard points out the monetary policy views of Janet Yellen (and other Keynesians and Monetarists) essentially amounts to an inflationist trickle down theory: inflate asset prices and thereby make the already rich even richer, then the rich will consume some of that extra wealth, and it will trickle down to everyone else. I made the same point in 2011, except then with reference to Bernanke.


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