Edward Hadas makes a couple of mistakes: Steven Keen is not an MMT economist although he is an MMT ally and QE is not the same as fiscal injection in that the former creates no new aggregate net financial assets in non-government while fiscal injection does. But these are subtle points and the rest of the piece is favorable, so no quibbles.
Reuters is a news service, and I initially picked this up at NADAQ. So MMT is getting wide exposure.
Reuters Breaking Views
Hadas: Fear of fiscal deficits is overdone
Edward Hadas
Reuters Breaking Views
Hadas: Fear of fiscal deficits is overdone
Edward Hadas
The dangers of fiscal deficits without replacing our current Gold Standard banking model are:
ReplyDelete1) The fiscal deficits will necessarily be smaller than they could otherwise be without a government privileged usury cartel to compete with.
OR
2) The resulting, politically unacceptable, price inflation will discredit deficit spending and strengthen the hands of gold-bugs.
"New wine (inexpensive fiat) requires a new wineskin (a new banking model)", isn't that obvious?