tag:blogger.com,1999:blog-2761684730989137546.post426499167771898442..comments2024-03-28T07:50:06.102-04:00Comments on Mike Norman Economics: Ellis Winningham — Balanced Budget Amendment Idiocy – An Economic Suicide Pactmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2761684730989137546.post-243500445424539042017-01-04T19:18:02.803-05:002017-01-04T19:18:02.803-05:00"FISCAL SPACE This largely meaningless phrase..."FISCAL SPACE This largely meaningless phrase will be on every finance minister’s lips in 2017. It’s shorthand for the amount of extra debt a government can take on to fund tax cuts or investment. The problem is that it is almost impossible to measure. A country’s capacity for borrowing depends not just on its current deficit and debt, but also on assumptions about future growth and interest rates, and whether the extra spending will boost potential output. So free-spending ministers will say they are taking advantage of fiscal space, while champions of austerity will insist no such space exists. In the end, governments will do what they wanted to do anyway. – Peter Thal Larsen"<br /><a href="https://www.breakingviews.com/features/thruppence-ten-buzzwords-to-expect-in-2017/" rel="nofollow">Ten Buzzwords For 2017</a><br /><br />You can see how the pushback and diminution of MMT jargon is proceeding apace by skeptics. One by one, key concepts are being tossed out with dubious political talking points.Ryan Harrishttps://www.blogger.com/profile/04815033054435303399noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-34236308724753510662017-01-04T17:02:31.472-05:002017-01-04T17:02:31.472-05:00.. to a nonexistent problem. six
Not quite. To a...<i>.. to a nonexistent problem.</i> six<br /><br />Not quite. To avoid welfare proportional to wealth, inherently risk-free sovereign debt should yield no more than 0% with shorter maturities having more negative yields.<br /><br />Note that this implies the most negative interest on reserves (NIOR) since those have 0 maturity wait.Andrew Andersonhttps://www.blogger.com/profile/14296407661618321637noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-5868304275978022552017-01-04T16:43:39.953-05:002017-01-04T16:43:39.953-05:00Talk about creating a complete disaster from nothi...Talk about creating a complete disaster from nothing. Thanks, American politicians.Penguin pophttps://www.blogger.com/profile/01438480665686684027noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-3831115219980371972017-01-04T16:16:28.928-05:002017-01-04T16:16:28.928-05:00The Balanced Budget Amendment ... the worst possib...The Balanced Budget Amendment ... the worst possible solution to a nonexistent problem. Hooray!Sixhttps://www.blogger.com/profile/10756430577510633914noreply@blogger.com