Saturday, October 22, 2011

Rob Parenteau — Failure of "expansionary fiscal consolidation" admitted

Short and to the point. MMT economists got this right as their warning boing back several years go to show.

(h/t Edward Harrison at Credit Writedowns)


Clonal said...

Critical segment in Parenteau's piece

a case in point of what happens when you impose fiscal consolidation on countries with high private debt to GDP ratios, high desired private net saving rates, and large, stubborn current account deficits.

Greece is the direction in which the US is going to go with "Fiscal Austerity" All the elements are in place!

Tom Hickey said...

Right, and not only US. Hopefully, this will be a warning shot.