Friday, August 23, 2019

Whither Central Banking? Lawrence H. Summers

In an environment of secular stagnation in the developed economies, central bankers’ ingenuity in loosening monetary policy is exactly what is not needed. What is needed are admissions of impotence, in order to spur efforts by governments to promote demand through fiscal policies and other means.
Throwing in the towel (but not endorsing MMT). Politically, this is about control of the Democratic Party after the transition from Clinton-Obama-Third Way. Summers is on the side of the Establishment, while Stephanie Kelton is Bernie's advisor and in league with The Squad.

Project Syndicate
Whither Central Banking?
Lawrence H. Summers & Anna Stansbury


Ralph Musgrave said...

So Summers, who opposed Obamas large fiscal stimulus package, and thus helped condemn millions to unnecessary unemployment, now admits that fiscal stimulus (i.e. MMT) has a role to play. Why doesn't he just shut up?

Ralph Musgrave said...

Plus there's Summers's role in financial deregulation which helped cause the 2008 crisis.

Seems the human race consists of numpties who are mesmerised by anyone who is famous for being famous - even where famous people are clearly incompetent.

Matt Franko said...

“Instead of more old New Keynesian economics, we hope, but do not expect, that this year’s gathering in Jackson Hole will bring forth a new Old Keynesian economics.”

Yo Fed doesn’t control fiscal policy....

“Why doesn’t he just shut up?”... ‘one funeral at a time!” Ralph ... he will eventually.... those surviving will form a synthesis including his work and that of maybe MMT/others.... it’ll still be f-ed up.... textbook Platonism 101.... ie synthesize and never make an adjustment....