roguegramma's Journal: Race of Keynesians

With the race being opened by the United States by trading government debt for monetary liquidity, governments all around the world cannot but react with their own programs of state debt to attract the cautious investors.

Anything else would mean prosperity in the United States at the expense of other economies. Even the German government, which was planning on its first stable budget in centuries, gave up its plan and happily jumped aboard the wagon.

This exposes the prisoners dilemma type of problem of a cautious spending policy by government: If one big government drops out and starts spending, the others have to follow suit.