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The 5 primary strategies are force wages higher boosting employment and consumption; various forms of pay people not to work; increasing government spending to spur consumption generating more taxes and reducing deficits; more consumption leads to higher productivity; last but not least fiscal stimulus will boost aggregate demand.  In all five cases there is almost no theoretical or empirical support for these strategies, and lots of evidence against them.  Despite trillions in additional debt the Central Banks of the world continue to do the same thing expecting a different outcome, the very definition of insanity.  The poster boy for this is of course the Japanese Central Bank as 25-odd years later, the highest developed country official debt level at 240% of Gross Domestic Product or GDP and counting, all they have to show for themselves is a litany of failure.  Yet we, the Europeans and the rest of the G-20 happily follow in their footsteps believing that the problems caused by too much debt can be fixed with even more debt.  Maybe the real problem here is that I’m just not smart enough to be a Central Banker because I can’t make sense of this stuff and it strikes me as just plain crazy.


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