Friday, July 4, 2014
Alberto Martin, Jaume Ventura — Managing credit bubbles
Not in paradigm with MMT, but interesting in that it consolidates the monetary (cb) and fiscal (Treasury) functions as government and sees the role of fiscal policy in stabilizing the credit cycle. So while not in paradigm, it's edging closer. Worth a look.
Vox.eu
Managing credit bubbles
Alberto Martin, Jaume Ventura
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1 comment:
Martin and Ventura are just saying that if the authorities counteracted what they call “bubbly” credit booms (what Greenspan would call “irrational exuberance”) then everything would be fine.
Trouble is that it’s extremely difficult to distinguish between say house price increases based on bubbles and house price increases based on fundamentals.
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