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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Friday, November 6, 2015
Brad DeLong — John Maynard Keynes Getting One Very Right: There Is No Medium-Run Full-Employment Sheet-Anchor for the Economy
Keynes quote from General Theory.
This, expressed in a very general way, is my theory of the rate of interest.
It's an interesting description by Keynes, but I see nothing in there about money being produced. It feels very much like there is q fixed amount of money in that description.
ISTM that there is a further interaction via the bank lending cycle and it is the desire to hold uninsured bank liabilities and equity that determines the interest rate on lending.
It's an interesting description by Keynes, but I see nothing in there about money being produced. It feels very much like there is q fixed amount of money in that description.
ReplyDeleteISTM that there is a further interaction via the bank lending cycle and it is the desire to hold uninsured bank liabilities and equity that determines the interest rate on lending.