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, October 11, 2015
Simon Wren-Lewis — One reason why monetary policy is preferred by New Keynesians
The interest rate variable as tool. Does it work the way monetarists assume in affecting the IS-LM model?
His basic argument seems to be that monetary policy leaves the mix of public and private spending the same, which struck me as an odd and not very persuasive argument. I left a comment there questioning his argument.
His basic argument seems to be that monetary policy leaves the mix of public and private spending the same, which struck me as an odd and not very persuasive argument. I left a comment there questioning his argument.
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