Sunday, November 25, 2012

Paul Krugman does some MMT

Scott Fullwiler tweets:
Krugman goes full-on #MMT (finally). Good for him!
The details for Krugman's new sovereign-currency-issuer-interest-rate framework were laid out in my 2006 paper. [I posted this link in the comments to Krugman's post - tjh]
Quick addendum--Krugman gets interest rates right but still in "natural rate of interest" camp on spending (inf. expectations cut real rate) 
The New York Time | The Conscience of a Liberal
Incredible Credibility
Paul Krugman | Professor of Economics, Princeton University


beowulf said...

"Krugman goes full-on #MMT (finally). Good for him!"

Somebody send for Cullen Roche, all is forgiven!

David said...

Pretty straightforward and to the point for Krugman. No more of the "we should be borrowing now because the market says it's O.K." kind of stuff. As it was he still probably went on one paragraph too long.