The trend towards looser fiscal policy could mark the biggest shift in economic thinking in a generation,,,,Discussion of pros and cons in which MMT gets a play, of course.
Favorite paragraph:
“The winning formula for the Democrats is they are going to have to endorse some of these relatively fiscally extreme positions to get nominated,” says one Democratic strategist, speaking of the 2020 presidential contenders. “The threats of debt and deficits have not panned out. We have been running deficits and debt for 30 years and where is the crowding out, the inflation and the soaring interest rates?”"The emperor has no clothes."
Financial Times
Why America is learning to love budget deficits
Sam Fleming and Chris Giles
1 comment:
Nice to see Chris Giles quoting Stan Laurel and Oliver Hardy - sorry I meant Kenneth Rogoff and Lawrence Summers.
Chris Giles (unfortunately) devotes a fair amount of space to Rogoff and Summers's views on MMT. I've just put an article on my blog going thru the relevant paragraphs:
https://ralphanomics.blogspot.com/2019/04/two-idiots-from-harvard-express-views.html
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