Sunday, January 7, 2018
Jared Bernstein — Questions for the MMTers
MMT (functional finance actually) challenged. Why is fiscal policy based on FF superior to monetary policy as presently conducted?
Let the debate begin.
On the Economy
Questions for the MMTersJared Bernstein | Senior Fellow at the Center on Budget and Policy Priorities and former Chief Economist and Economic Adviser to Vice President Joe Biden in the Obama Administration
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4 comments:
Bernstein is very clued up on some of the problems MMTers have not thought their way thru yet. Positive Money in contrast has thought thru those problems as I explain in a comment after Bernstein's article.
A progressive income and wealth tax with very high top brackets becomes an automatic stabilizer in case of overheating.
We are today in a deflationary economy, and have been for the last at least twenty years. The main inflationary component of the CPI are the asset bubbles which are fed by those with high incomes and lots of wealth. These components are housing, education and health - all in a bubble that feeds income and wealth to the top 1%, and raises the living costs of the bottom 80%. The remainder win some, and lose some.
I would like to add that the major reason that wealth shifts to the top, has been explained by the close to zero sum trading environment of modern market economies Well explained in the literature. For example - Colloquium: Statistical mechanics of money, wealth, and income
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