Economic Thoughts...

  Article; Austrian School of Economic Thought Gaining Influence as Nations Tackle Debt    Comment;   Use of quantitative easing was not fully supported by many economists including Paul Krugman. His stand was that the economy is in liquidity tarp and the US economy needs fiscal policy. Markets are unable to lift an economy in liquidity trap, only govt. can boost economic activity through public expenditure. We needed to affect demand by higher wages. As far as gold standard is concerned even gold does not have an intrinsic value. It is only used to produce jewelleries nothing else. Moreover deregulation of banks in the US, mainly the shadow banks, were responsible for the sub-prime crisis...