Bill Mitchell –billy blog Central bankers have created excessive unemployment for decades because they use the wrong theory

It’s Wednesday and also a holiday period, so just a few things today. First, I discuss a research paper that has concluded that central bankers have been using the wrong model for years which has resulted in flawed estimates of the state of capacity utilisation, and, in turn, created excessive unemployment. Second, we have a little Modern Monetary Theory (MMT) primer before going to the beach....

Bill Mitchell – billy blog

Central bankers have created excessive unemployment for decades because they use the wrong theory
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia