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Quotation of the Day…

… is from pages 414-415 of W.H. Hutt’s quirky but important – and regrettably neglected – 1979 volume, The Keynesian Episode (original emphasis):

The trouble with using “artificially low” interest rates to achieve reemployment is that there is never a moment at which it can be legitimately contended that the abandonment of inflation will not mean some unemployment, in the absence of the price and cost adjustments which Keynesianism excludes from consideration.

DBx: Yep. Inflation of the money supply breeds dependency of some producers on inflation of the money supply. Stop, or even slow, that inflation, and unemployment will occur. This unemployment will be relatively short-lived if prices and wages adjust; it will be longer-lived if prices and wages are, as they say, “sticky downward.”

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