Kimball Corson — A Note on Liquidity Preference

Short summary of the liquidity trap.

Wandering the Oceans: SailBlogs
A Note on Liquidity Preference
Kimball Corson

Greece eyes elections after debt deal

Keyword in this headline being "after", story at Yahoo!.  So much for democracy.  A tremendous abuse of authority.

Whoever wins the poll, Greece will have to stick to the reforms it has promised, German Finance Minister Wolfgang Schaeuble warned. "Greece must stick to its obligations after the election. That's the basis for the (bailout) programme," he said in an interview with Greek newspaper To Vima.

Austerity measures associated with the policies have plunged the Greek economy into its longest and deepest slump since World War Two and there is no clear sign of a return to the kind of growth that could help cut its crippling debt pile.

Underlining the dire state of an economy in which unemployment is running at 21 percent with one in two young people out of work, data on Friday showed gross domestic product shrank by a record 7 percent in 2011. Investment slumped by 21 percent after a 15 percent slide in 2010.

Some of these outcomes are unprecedented in the post WW2 period, these are historic events we are witnessing.