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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Thursday, December 28, 2017
Lars P. Syll — The causes of secular stagnation and the loanable funds theory
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...
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, 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...:-)
“So, yes, the ‘secular stagnation’ will be over, as soon as blah blah....“
ReplyDeleteSo are we now calling 4% gdp growth “stagnation”?
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...
ReplyDeleteThe 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...
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?
ReplyDeleteiow Lars blog here is asserting that the implementation of a loanable funds policy is a benign act...
ReplyDeleteICYMI
ReplyDeleteFixing 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
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.
ReplyDeleteIf 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...:-)
That too Ralph but what if the loanable funds policy is not benign... and is\was causing the stagnation ie <3% growth...
ReplyDeleteI left a comment on Lars Syll's site - more constructive than my above flippant comment....:-)
ReplyDelete