Lars P. Syll — Abba Lerner on Functional Finance and Ricardian equivalence

Nice Lerner quote

Lars P. Syll’s Blog
Abba Lerner on Functional Finance and Ricardian equivalence
Lars P. Syll | Professor, Malmo University

Also Lucas’ bridge and the Ricardian equivalence fairy-tale

See Scott Fullwiler

…In other words, setting the functional finance strategy as a simple rule like a fiscal policy version of a Taylor rule illustrates that a true functional finance fiscal policy strategy is always Ricardian.

New Economics Perspectives, Functional Finance and the Debt Ratio—Part IV

It’s important to clarify that while functional finance is Ricardian, it is not so “on purpose”; that is, the policy strategy is to sustain full capacity utilization—no more and no less stimulus than necessary to reach this point (again, MMT’ers have little use for the intertemporal budget constraint given the latter’s reliance on Assumption C). That the functional finance strategy is in fact Ricardian is a side effect—and, again, a very interesting one at that—not something that is pursued directly.

Naked Capitalism, Scott Fullwiler: Paul Krugman—The Conscience of a Neo-Liberal?