Sunday, May 3, 2020

Can governments afford the debts they are piling up to stabilise economies? Stephanie Kelton and Edward Chancellor


Stephanie Kelton says no problem for countries that issue their own currencies, set their own rate, and don't take on obligations not in their currency.

Edward Chancellor says no, because "inflation." Interestingly, he argues from history and makes no distinctions, treating all situations as homogenous regard of monetary regime and attendant circumstances. Fail.

Financial Times
Can governments afford the debts they are piling up to stabilise economies?
Stephanie Kelton and Edward Chancellor

See also

IndependentAustralia
Government money must go into economy to benefit all — not just business
Geoff Davies

6 comments:

lastgreek said...

Keith Boykin @keithboykin

Australia: $1993 a month
Canada: $1,433 a month
Denmark: Up to $3,288 a month
France: Up to $7,575 a month
Germany: Up to $7,326.78 a month
Ireland: Up to $1793.44 a month
UK: Up to $3,084 a month
U.S.: $1,200 to last for 10 weeks

Matt Franko said...

Greek not even that has gone out the IRS was on social distancing.... only EFTs went out...

Trump ordered IRS back in to the office tomorrow...

US bureaucracy incompetent as usual...

lastgreek said...

So I'm reading that farmers in Idaho are dumping their potatoes.

At the supermarket, yesterday, I was told that there was no more Idaho potatoes in stock and no idea when and if the next shipment would arrive. Personally, I would have settled for Russet potatoes but I was buying for my mother and she refuses to eat the Russet potatoes -- Idaho or nothing :(

https://www.idahostatesman.com/news/coronavirus/article242297986.html

(yes, I read them all :) )

Peter Pan said...

PEI potatoes are the best.

Ralph Musgrave said...

If Stephanie Kelton is literally saying "no problem" then she's over-simplifying the issue. It is quite possible that the build up of debts (private sector assets) will result in an excessive spending spree by the private sector when this is over.

But equally it's possible that consumer and business confidence will have been hit so hard that that counterbalances the latter spending spree.

Unknown said...

Equally governments have the tools to deal with abnormal inflation!