Tuesday, February 26, 2019

Lars P. Syll’s Blog Krugman vs Kelton on the fiscal-monetary tradeoff


The battle of the titans. Or maybe better, David and Goliath.
We have to free ourselves from the loanable funds theory — and scholastic gibbering about ZLB — and start using good old Keynesian fiscal policies. Keynes — as did Lerner, Kaldor, Kalecki, and Robinson — showed that it was possible to promote economic growth with an “appropriate size of the budget deficit.” The stimulus a well-functioning fiscal policy aimed at full employment may have on investment and productivity does not necessarily have to be offset by higher interest rates.
Lars P. Syll’s Blog
Krugman vs Kelton on the fiscal-monetary tradeoff
Lars P. Syll | Professor, Malmo University

1 comment:

Noah Way said...

Krugman either knows that MMT is accurate and is defending his Nobel Prize in Economics OR he is an ideologue and clueless buffoon.

Either way he is wrong.