Thursday, December 28, 2017

Lars P. Syll — The causes of secular stagnation and the loanable funds theory


Like Keynes said.

Lars P. Syll’s Blog
The causes of secular stagnation and the loanable funds theory
Lars P. Syll | Professor, Malmo University

8 comments:

Matt Franko said...

“So, yes, the ‘secular stagnation’ will be over, as soon as blah blah....“

So are we now calling 4% gdp growth “stagnation”?

Matt Franko said...

Also, According to the MMT people, there is no negative result of the policy makers believing in “loanable funds”... so why the worry? It’s a non issue per MMT...

The crash and resultant tepid growth was a result of the deficit being too low... again according to MMT... concern should rather be focused on getting the deficit up right now .... the Peterson people being opposed to that...

Matt Franko said...

Or are they saying that the sole problem with loanable funds is that they are wasting their time? It doesn’t do anything either good or bad so they are just spinning their wheels and should move on?

Matt Franko said...

iow Lars blog here is asserting that the implementation of a loanable funds policy is a benign act...

AXEC / E.K-H said...

ICYMI

Fixing the loanable funds blunder
http://axecorg.blogspot.de/2017/08/fixing-loanable-funds-blunder.html

Egmont Kakarot-Handtke

#Economics #FailedScience #FakeScience #CargoCultScience #BogusScience #ScientificIncompetence #Keynes #Keynesianism #PostKeynesianism #MMT #MacroEconomics #ProfitTheory #SectoralBalances #ParadigmShift #MacroFoundations

Ralph Musgrave said...

Matt, The important thing about secular stagnation is that it's an idea pushed by someone who is very very important, i.e. Lawrence Summers. And when someone important says something, then far as 90% of the population and 90% of the economics profession is concerned, what they're saying must be important.

If Summers had instead claimed that GDP was related to the length of Oprah Winfrey's toe nails, then everyone would now be discussing Oprah Winfrey's toe nails...:-)

Matt Franko said...

That too Ralph but what if the loanable funds policy is not benign... and is\was causing the stagnation ie <3% growth...

Ralph Musgrave said...

I left a comment on Lars Syll's site - more constructive than my above flippant comment....:-)