Friday, April 29, 2016

Brad DeLong — Rescue Helicopters for Stranded Economies

Brad prefers fiscal, calling it a no-brainer, but if the political will is not there, then helicopter money from the central bank is needed to prevent a further slid.

Project Syndicate
Rescue Helicopters for Stranded Economies
J. Bradford DeLong | Professor of Economics at the University of California at Berkeley, a research associate at the National Bureau of Economic Research, and formerly Deputy Assistant US Treasury Secretary during the Clinton Administration

1 comment:

Ralph Musgrave said...

So Brad has caught up with MMT. What took him so long?

Only problem with the "political will is not there” point is that when politicians tumble to the fact that the central bank is doing politicians’ job for them, they may close down the central bank or demand total control of it.

But given that politicians have an average IQ of about one, it’ll probably take them some time to work that one out.