The Rise Of Washington’s Infernal Inflation Machine, Part 2

As we indicated in Part 1, the idea that market driven GDP should find its own natural level without a heavy-handed assist from the fiscal and monetary arms of the state is the polar opposite of the reining Phillips-Curve-in-one-country orthodoxy. Instead of viewing the US economy as an instance of vibrant capitalism, the latter depicts it as a giant, self-contained, hermetically sealed bathtub that is always malfunctioning and falling short of its potential without constant external stimulus, especially from the central banking branch of the state.