I can't say I've seen anyone in the deficit debates talking about the demand leakages. Not a mention in the mainstream press, financial news media, or any of the thousands of economic reports? That's like discussing the right horsepower for a truck or an airplane without any consideration of the weight of the vehicle.Read it at The Huffington Post
Demand Leakages: The 800lb Economist in the Room
by Warren Mosler
1 comment:
"That's like discussing the right horsepower for a truck or an airplane without any consideration of the weight of the vehicle."
I would contend that a true monetarist cannot even come close to understanding what this statement really means....but they can effectively pretend that they do.
As a parallel in human behavior, I believe we've discussed here the documented ability of psychopaths to effectively pretend that they care about other people, thru mimicry, etc....
http://en.wikipedia.org/wiki/Mathematical_maturity
I surmise that at least 50% of the people who read Warren's article have, in fact, no idea what he is talking about in this sentence and hence cannot understand the whole concept of "demand leakages" that he presents here.
Perhaps a math test can be developed and can be administered to people, and if one doesnt pass this test, then one would not be allowed anywhere near positions related to economic policymaking.
Most if not all monetarists would never pass the test imo...
rsp,
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