Thursday, June 05, 2003

Tuesday, June 03, 2003

Thinking about the liquidity trap

Worried about that old Devil Liquidity Trap? Want to stimulate the economy without cutting taxes, increasing spending, or cutting interest rates? There is a 4th way. And best of all it's free.

Radical Derugulation. If you want more economic activity, just stop outlawing it. Every reg from NYCs rent control, to every town's taxi monopoly, to land use controls acts to outlaw some economic activities. With the regs in place, some economic activity that would otherwise have happened won't. You want more economic activity -- then legaliz it.