Reply #15: It is not Freidmanite economics [View All]

[TheBigotBasher]

The US/UK went far beyond that. His ideas were killed off probably by 1983.

This is a horrible "third way" prostitution of Keynes and Austrian economics.

Central banks would have unregulated uncontrolled unaccountable (to be read as not politically motivated) control of the economy. The Central banks were to decide levels of acceptable inflation and growth.

The fiscal and trade deficits would only matter in as much as the banking system allowed it to matter.

By the 1990s key elements of the economy were removed from the inflation indexes of the UK and US, in particular property. By removing property from the inflation index, booms in property could be ignored in wage rates, in the same way as booms in share prices are.

"Inflation" was defeated. Wages did not rise. Homeowners however felt richer. Tis bubble was always going to burst, the sad thing is politicians got away with blaming it on the poor.

The debt to bail out the property bubble will not be reduced by inflation. It will be paid back in full.