Posts Tagged ‘I Knew You Did’
You Want to Know What’s Happening In the Eurozone….Yes, I Knew You Did
DO you want to know what’s happening in the EuroZone? Well, if you really want to know what’s happening over in Euroland then you should read this book:
A Monetary History of the United States, 1867-1960
Milton Friedman & Anna Jacobson Schwartz
Admittedly at near 900 pages including charts and references it is pretty hard going. But if you really want to understand, that’s where you need to go.
As and when you read it though you’ll need to remember a point. When Friedman starts talking about what the Federal Reserve did in the US before and during the Great Depression, he’s actually listing the whole set of things that they got wrong. When he says they made an error here then that’s exactly what the European Central Bank has been doing. Like, for example, raising interest rates because of the risk of inflation. We have a risk of deflation, of a depression, in front of us, not a risk of dangerous inflation.
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