It's widely agreed that Jeremy Corbyn's popularity is due in large part to the mediocrity of the alternatives. As if to demonstrate this, Chris Leslie - Shadow Chancellor - claims that Corbynomics would be inflationary.
This isn't wholly unreasonable. A money-financed fiscal expansion - which is all "people's QE" is - would increase employment and aggregate demand. Conventional economics says this would reduce the "output gap" which would tend to add to inflation.
The claim might be reasonable. But we cannot make it with much confidence, for three reasons.…Stumbling and Mumbling
Is Corbynomics inflationary?
Chris Dillow | Investors Chronicle
2 comments:
I left a comment there - much the most intelligent and insightful comment needless to say.
Bill Mitchell's latest:
http://bilbo.economicoutlook.net/blog/?p=31487
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