Okie dokie. So, I awoke somewhere around 4:15 am to finish tearing into Krugman’s latest drivel, when I discovered that Bill Mitchell beat me to the punch. Good deal. I’ve spent some time this morning re-writing my article so that Krugman takes a hit on two fronts: Mitchell knocks him down, and I kick him….Ellis Winningham — MMT and Modern Macroeconomics
Deficits Matter, Paul Krugman Doesn’t
Ellis Winningham
5 comments:
Haha! Count Krugula. I love that. Accurate name for the guy.
Wait a minute... do deficits matter now? I thought deficits didn't matter? Wait... never mind....
Krugman is so partisan he's predictable.
The problem with "deficits matter" is that we don't know that they do. Sure, they might in some cases, but not in others. To assume that deficits over some number will generate inflation is a simple theory. Whether the theory holds depends on lots of factors, some we might not even understand. Trotting this out over and over isn't helpful and smacks of Kwak's economism.
Deficits are ex post. Spending matters.
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