The blog discusses current affairs and development of national economic and social health through unique idea generation. Consider the blog a type of thought experiment where ideas are generated to be pondered but should never be considered definitive as a final conclusion. It is just a pathway to understanding and one may equally reject as accept ideas as theoretical dribble. New perspectives, new opportunities, for a new generation. “The price of freedom is eternal vigilance.”—Thomas Jefferson
Showing posts with label The Great Recession. Show all posts
Showing posts with label The Great Recession. Show all posts
Thursday, January 16, 2014
Bernanke Discusses His Logic During the Fiscal Crisis
Understanding the logic of decision makers impacts how crisis and problems are understood. The process of fiscal policy is a negotiation based upon position, players, events and participants. Eventually an approach is formed and enacted. It is easy to second guess policy in hindsight but it is much more difficult to find a path while events are unfolding. In many decisions there is no right or wrong but only possibilities based upon information available at the time and the person (s) interpreting that information. However, sometimes it is beneficial to think beyond today and create surpluses that reduce systematic costs of borrowing in the future as well as have opportunities to use infusion liquidity as one of many possible tools. Each decision-maker works within the context of what is currently available, past context, and projected possibilities.
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