{"id":12337,"date":"2011-12-01T12:58:07","date_gmt":"2011-12-01T16:58:07","guid":{"rendered":"http:\/\/quotulatiousness.ca\/blog\/?p=12337"},"modified":"2011-12-01T12:51:24","modified_gmt":"2011-12-01T16:51:24","slug":"economists-no-longer-bring-out-the-big-guns-now-they-reach-for-the-bazooka","status":"publish","type":"post","link":"https:\/\/quotulatiousness.ca\/blog\/2011\/12\/01\/economists-no-longer-bring-out-the-big-guns-now-they-reach-for-the-bazooka\/","title":{"rendered":"Economists no longer bring out the “big guns”: now they reach for the “bazooka”"},"content":{"rendered":"

Terence Corcoran has lots of examples in his latest Financial Post<\/em><\/a> column:<\/p>\n

\n

For months now Europe has been searching for the big bazooka of economic policy to get it out of its fiscal mess. Exactly when bazookas became a core principle of economic policy isn\u2019t clear, but it is today everywhere in use. Google \u201ceuro and bazooka\u201d and you\u2019ll see what I mean.<\/p>\n

In the high precincts of economic analysis, there is general agreement that Wednesday\u2019s move by central banks, including the Bank of Canada, the Federal Reserve and the Bank of England, to make cheap dollar loans available to European banks, while a major bailout event, falls short of reaching the level of intervention required by the high priests of bazookanomics. \u201cIt\u2019s not the bazooka the market was seeking,\u201d said a Wall Street Journal<\/em> report.<\/p>\n

One of the early users of the word was Hank Paulson. As U.S. treasury secretary in 2008, he famously said, \u201cIf you have a bazooka in your pocket and people know it, you probably won\u2019t have to use it.\u201d At the time, his theory was that the U.S. government would not have to take over control of Fannie Mae and Freddie Mac because just having the power to take them over was good enough stop a bond market run on the two bankrupt mortgage backers at the heart of the U.S. housing crash.<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Terence Corcoran has lots of examples in his latest Financial Post column: For months now Europe has been searching for the big bazooka of economic policy to get it out of its fiscal mess. Exactly when bazookas became a core principle of economic policy isn\u2019t clear, but it is today everywhere in use. Google \u201ceuro […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[25],"tags":[436,337,400],"class_list":["post-12337","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banking","tag-eu","tag-language"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2hpV6-3cZ","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/12337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/comments?post=12337"}],"version-history":[{"count":1,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/12337\/revisions"}],"predecessor-version":[{"id":12338,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/12337\/revisions\/12338"}],"wp:attachment":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/media?parent=12337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/categories?post=12337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/tags?post=12337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}