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Painting a grim picture of the current monetary situation, she turns to political economist Will Hutton to explain things further.
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Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 2.35pm BST14:35 Macpherson says we simply don't know where Scotland's monetary situation will end up.
Germany, being the most prosperous and having the largest population in Europe, resists giving up the euro, because it helps control, in a major way, the monetary situation in Europe.
The possibilities of the central bank's influencing the monetary situation through the money market are limited to the large government needs for short-term funds, no market for long-term government borrowing being established.
The influence of the Bundesbank on the monetary situation through open-market operations by the 1960s was greatly hampered by the vast liquidity of the banking system as a consequence of the persistence of Germany's favourable balance of payments situation.
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Indeed, in emerging markets that have practiced modern monetary theory, situations could arise where people could buy two drinks at bars at once to avoid the hourly price increases.
By any of the usual rules of monetary policy, the situation calls for aggressive rate cuts.
In that situation, monetary policy stops having any effect at all, as happened in Japan in the 1990s and could happen in the United States, which lowered key interest rates to historic lows on Tuesday.
In this situation, monetary policy matters a great deal, and Mr. Bernanke's focus on avoiding deflation and hence limiting the problems for debtors does not seem inappropriate (for more on Mr. Bernanke, his motivations and actions, see David Wessel's book, "In Fed We Trust").
(For more insight, read "10 Ways to Improve Your Credit Score").. Preventing Foreclosure The moment you receive foreclosure notice, the first thing to do is to contact your lender's Loss Mitigation Department and let them know about your monetary problems and situation.
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