Last week Jim Grant, editor of Grant’s Interest Rate Observer, accepted the Manhattan Institute’s Hayek Book Prize for The Forgotten Depression: 1921, The Crash that Cured Itself, and he took the opportunity to explain his rationale for writing the book as well as his basic argument against seven-years and counting worth of monetary stimulus. “In 2008, the Great Depression of the 1930s monopolized the market in historical analogy. Policymakers constantly invoked the 1930s with reference to the crisis of the mangled mortgages and combusting banks. No intervention was too great to forestall a repeat of that calamity, they said.” said…