In “Twilight of the Money Gods,” John Rapley argues just that—and is fairly convincingby Avinash D Persaud / December 20, 2017 / Leave a comment
Twilight of the Money Gods: Economics as a Religion and How it all Went Wrong by John Rapley, (Simon & Schuster)
How old were you when your parents first told you that money doesn’t grow on trees?
Before 2008, if you asked a congregation of economists why we couldn’t simply print money to pay for what we need, they would first scoff. Then if you persisted they would invoke Germany’s inter-war hyper-inflation as proof of the doctrine that this leads to higher prices and so there is no magic money tree.
However, since 2008, the world’s major central banks have printed $12trn as part of their “quantitative easing” programmes. But the inflation needle gently bobbed up and down and many continued to be worried about the perils of deflation—not inflation. QE is a Lutheran moment for the Church of Economic Science.