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Read it at Naked Keynesianism Not so Keen on Krugman
by Mathias Vernengo | Assoc. Prof., Univ. of Utah
5 comments:
Leverage
said...
Tom, read this at the same blog, very epic what Argentina is doing to be honest: http://nakedkeynesianism.blogspot.com.es/2012/04/economist-and-argentina.html
They are learning the right lessons from hyperinflation, instead of hyperventilation from creditors like Germans do, pushing eurozone to depression and eventually populism and violence.
For the government to acknowledge 'monetary financing' as something valid and legally recognized is good stuff, shameless and not talking shit about 'we are broken' is good stuff!
May think about emigrating from Argentina from Spain in the future if things continue right the same path.
P.S: Spanish prime minister today said in a press conference, more or less, when talking about budget cuts: "we acknowledge these policies don't won't neither here or outside in the short term, we had to endure them because of Brussels even if we don't like them, but we assure you these will work in the long term"
So 'expansionary austerity' does not work, we know it, but we are cowards that will give up to external powers & creditors because we are broken (non-monetary sovereignty is a bitch), but be sure this will work in the long term, believe us (like greeks who have been betrayed by their elites). WTF!?
“We discard that financing the public sector is inflationary because according to that statement the increase in prices are caused by an excess of demand, something we do not see in Argentina. In our country the means of payment are adjusted to the growth of demand and tensions with prices must be looked on the supply side and the external sector”.
“We’re recovering the sovereign capacity to formulate and implement economic policy”, said Marcó del Pont who anticipated some pictures will be coming down from the bank’s hall of fame “beginning with Milton Friedman.”
next steep: forbid inflationary issuing of debt securities beyond what is necessary to conduct monetary policy. No risk free interest income for doing nothing.
Might not be the best PR for MMT though - given Argentina's history of out-of-control inflation. Sceptics will see it as Argentina returning to its traditional monetary irresponsibility.
5 comments:
Tom, read this at the same blog, very epic what Argentina is doing to be honest: http://nakedkeynesianism.blogspot.com.es/2012/04/economist-and-argentina.html
They are learning the right lessons from hyperinflation, instead of hyperventilation from creditors like Germans do, pushing eurozone to depression and eventually populism and violence.
For the government to acknowledge 'monetary financing' as something valid and legally recognized is good stuff, shameless and not talking shit about 'we are broken' is good stuff!
May think about emigrating from Argentina from Spain in the future if things continue right the same path.
P.S: Spanish prime minister today said in a press conference, more or less, when talking about budget cuts: "we acknowledge these policies don't won't neither here or outside in the short term, we had to endure them because of Brussels even if we don't like them, but we assure you these will work in the long term"
So 'expansionary austerity' does not work, we know it, but we are cowards that will give up to external powers & creditors because we are broken (non-monetary sovereignty is a bitch), but be sure this will work in the long term, believe us (like greeks who have been betrayed by their elites). WTF!?
Speaking of Argentina, I thought this was interesting.
Printing money does not lead to inflation, argues Argentine central bank president
“We discard that financing the public sector is inflationary because according to that statement the increase in prices are caused by an excess of demand, something we do not see in Argentina. In our country the means of payment are adjusted to the growth of demand and tensions with prices must be looked on the supply side and the external sector”.
“We’re recovering the sovereign capacity to formulate and implement economic policy”, said Marcó del Pont who anticipated some pictures will be coming down from the bank’s hall of fame “beginning with Milton Friedman.”
Good stuff, postkeynesian central banker?
next steep: forbid inflationary issuing of debt securities beyond what is necessary to conduct monetary policy. No risk free interest income for doing nothing.
Gives me a warm feeling, like money in the bank.
The bank that keeps their mortgages and doesn't dabble in derivatives, that is.
Might not be the best PR for MMT though - given Argentina's history of out-of-control inflation. Sceptics will see it as Argentina returning to its traditional
monetary irresponsibility.
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