Deemed credible by whom? You need to stop accepting the conventional wisdom and tugging your forelock to someone's presumed authority just because they are promoting snake oil on TV or the newspapers.
The Fed is not the BOJ, the root behind an after the recession inflation argument is the plain fact that the fed will NEVER stop trying. If printing $100T and dropping from helicopters wont create inflation then we are living in fantasy land Almost all fiat currencies have gone down over the long-run(inflation), the only one exception is that japanese yen, one could pay attention to the exception, but whats wrong with paying attention to the rule The BOJ said Paul Krugman's suggestion that they should print gigantic levels of yen was too 'risk'. The Fed is not the BOJ, bernanke wouldn't have much problem with it, in fact it was what he recommended to the BOJ
Did Laffer not lose a bet with Peter Schiff on national TV over this very issue? I think he did. Has the 1 USDollar been paid yet?
As I mentioned, the reason why BOJ monetary easing failed to create inflation was due to idiosyncratic characteristics of the banking sector in the country. Their banks had too much bad debt, and simply couldn't lend -- even at lower borrowing rates.
It is very unlikely that those four will happen at the same time , imo Did it ever happened within 40-60 years ?
That's a fair point. Now that you take it to that level, Laffer gets way too much credibility because of the Laffer Curve.
Laffer has as much credibility as Ben Stien If paper wealth is real wealth like he said here than he should be a money creation fanboy http://www.elitetrader.com/vb/newreply.php?action=newreply&threadid=166527