No Wages, No Spending Despite ‘Pump Priming’ Autos

By |2014-10-15T13:06:31-04:00October 15th, 2014|Economy, Federal Reserve/Monetary Policy, Markets|

The orthodox notion of monetary policy, following its Keynesian root, is that spending for the sake of spending will lead to a healthy economy. It does not matter, to this philosophy, how or why that spending takes place; only that it does. If, for example, the Federal Reserve can “stimulate” the interest rate sensitive sectors of the economy, like automobiles, [...]