Out of paradigm with MMT but useful as an analysis of how the elite is likely to act when faced with the next recession based on core beliefs with respect to contractions. Could get ugly under this scenario.
World Economic Forum
The US is not ready for the next recession. Here's why
Barry Eichengreen | Professor of Economics and Political Science, University of California, Berkeley
4 comments:
Eichengreen sets out the problem but doesn't tell us the solution. I conclude that Eichengreen himself doesn't know what the solution is. If only Laurel and Hardy were in charge, things would be so much better.
The next recession is the perfect opportunity to cut those expensive social programs while bailing out the uber-rich with more "quantitative easing". Gotta help those job creators!
As long as they keep the current policy there won’t be another recession....
2%+ YoY fiscal expansion, Very slow rate increases, winding down the QE, not using deposit accounts for fiscal surpluses, elimination of non-risk assets from computation of SLR, .... just keep this going and there won’t be another recession..
“faced with the next recession”
Recessions don’t just happen by themselves... it’s policy that causes the recessions in the first place...
So we should just always be monitoring the policy ...
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