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Europe Is Deflating. Keynesians Are Aghast.

Written by Gary North on August 12, 2014

This gets little publicity. For two years, the European Central Bank has been shrinking its monetary base.

Europe as a whole is close to recession, but prices are not falling.

Keynesian analysts are fit to be tied. The ECB is supposed to inflate, like other central banks. It isn’t.

This Washington analyst has little good to say about the policy.

Europe is supposed to be hit with price deflation. It has not happened so far.

The ECB has said that it may ramp up in September. Let’s hope it conveniently forgets.

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3 thoughts on “Europe Is Deflating. Keynesians Are Aghast.

  1. Keynesians are always aghast when reality intrudes on their misbegotten theories. It has been often repeated that "if you don't read history you are doomed to repeat it". It is apparent that Keynesians do not read history, ever. But somehow their bizarre ideas survive. See my blog at http://cranky-conservative.blogspot.com

  2. WILL CASEY PURVIS says:

    OUT OF THE EU==========OBOMA BACK TO KENYA TO RUN HIS MUSLIMS==================

  3. Wild Thing says:

    uh, The U.S. is not in the E.U.