An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Sunday, March 29, 2015
Sandwichman — Is the Economic System Self-Adjusting?
Keynes contra Krugman. (Nice Keynes quote you may want to file.)
There are two self-adjusting mechanisms far as I know: Say’s law and the Pigou effect. Neither works very well, so Keynes (and MMTers) are right: we need variable deficits and perhaps the occasional surplus to do the adjusting better.
There are two self-adjusting mechanisms far as I know: Say’s law and the Pigou effect. Neither works very well, so Keynes (and MMTers) are right: we need variable deficits and perhaps the occasional surplus to do the adjusting better.
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