Nov 10, 2013

Time reporter Justin Fox on Irving Fisher's prescription for the 1930s bust

For all its flaws, [Irving] Fisher's economic approach delivered genuinely important insights. He proposed in 1911 that the government issue inflation-linked bonds; in 1997, the Treasury Department finally got around to doing so. If anybody in power in Washington had been willing to follow his advice in 1930 or '31 (which essentially amounted to "Print more money"), the Great Depression might not have been so great. For the past two years, the Federal Reserve has been working right out of the Fisher playbook, and while the results haven't been perfect, they've been a lot better than those of the early 1930s.

~ Justin Fox, Time, "The Myth of the Rational Market," June 22, 2009

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