Saturday, February 25, 2012

Konczal — Administration switching positions toward balance sheet recession?

The White House also looks to be on team balance sheet....
When Noam Scheiber wrote about how the administration viewed the economy in late 2010, he explicitly contrasted its wonks’ opinions with that of the balance sheet recession theorist Richard Koo. So is this a revolution within the administration? Is this why it is now pushing for writedowns and refinancing, after having left housing on the side for the past three years? Let’s hope so, since I consider being three years late to the party better than never showing up.
Read it at Rortybomb
Is the Administration Joining Team Balance-Sheet Recession?
by Mike Konczal

Still no sectoral balances mentioned. I guess they haven't discovered MMT yet, or Wynne Godley, either.


Clonal said...

According to Scott Fullwiler,

Richard Koo understands the fundamental #MMT point that for MV=PY, M=govt debt and V=non-govt leveraging---

See Koo Richard Koo: Governments That Practice Austerity Will See Their Economies Crushed, And Budget Deficits Soar

Tom Hickey said...

Winterspeak — Richard Koo, who is so close, is still wrong

Warren's proposal has continually been suspend payroll tax, award per/capita block grants to states, and institute MMT JG at $8 p/hr + benefits.

Bill Mitchell — Balance sheet recessions and democracy

Bill Mitchell — Historically high budget deficits will be required for the next decade (on Koo)

IIRC, Koo is still stuck in the IGBC, though.

Clonal said...
This comment has been removed by the author.
Clonal said...

In the Mosler JG plan, the plus benefits is critical. Medical benefits and SS have to be included in that! Currently UI does not count towards SS points and of course no health coverage.

The Economic Maverick said...

Thank you so much for posting. I will read it now!