GOOD READ: Richard Koo On Why Europe’s Austerity Will Cause Deflationary Spiral

Good stuff from ZeroHedge:

While not new to our thoughts, Richard Koo, Nomura’s Balance Sheet Recession guru, has penned a lengthy but complete treatise on why governments need to borrow and spend now or the world faces a deflationary spiral. The Real-World Economics Review posting makes it clear how his balance sheet recessionary perspective of the deleveraging and ZIRP trap we now live in means bigger and more Keynesian efforts are needed to pull ourselves out of the hole. While we agree wholeheartedly with his diagnosis of the problem, his belief in the solution…

Rest is here.

 

One thought on “GOOD READ: Richard Koo On Why Europe’s Austerity Will Cause Deflationary Spiral

  1. Dennis,
    I assume you buy into Koo’s argument, but do you also buy into ZH’s story. Or is it just an interesting article?
    Stewart

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