Out of paradigm with MMT, but interesting none the less for demonstrating the currency out of paradigm thinking struggling to get in paradigm. Someone send him Warren Moser's Seven Deadly Innocent Fraud of Economic Policy.
vox.eu
Thinking the unthinkable: The effects of a money-financed fiscal stimulus
Jordi Galí | Director of CREI, Universitat Pompeu Fabra; Research Fellow, CEPR
3 comments:
Tom, the author is from Spain. MMT does not really apply there.
He should still explain that and why money-financed fiscal stimulus is required in the EZ and how it would not be inflationary, as is feared.
He begins with a neoclassical ideal model, in which money-financing would immediately be inflationary and then adds frictions to show that it would not.
He really doesn't get it.
"Someone send him Warren Moser's Seven Deadly Innocent Fraud of Economic Policy."
These people (Tip off: "Universitat") operate in transmit only mode Tom....
Post a Comment