Economics professor L. Randall Wray, a Bard College professor who has championed Modern Money Theory, which de-emphasizes the drawbacks of debt, said the special coin is no wackier than other expansionary financial maneuvers enacted by the Federal Reserve during the pandemic that have involved hundreds of billions of dollars of public and private debt.
“It is a work around,” Wray said. “It sort of makes it obvious that the debt limit itself is a pretty stupid idea.”...
Wray and others note that massive infusions of liquidity by the Federal Reserve in the wake of the 2008 crisis did not spur inflation….
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3 comments:
“ Wray and others note that massive infusions of liquidity by the Federal Reserve in the wake of the 2008 crisis did not spur inflation….”
lol so what is he saying ? It was a good idea?
The “infusions!”in Sept 2008 collapsed the leverage ratio of the depositories and caused the whole GFC…
If Wray is so smart why does he think RRP is now at $1.6T? Fed just jerking off?
Remember he was the one who when the Fed had to provide $1T of Reserves for 29 successive 30 day operations he said “the Fed loaned $29T!”
Which would get him flunked out of any accredited Finance & Accounting Science program in the country…
“ Wray said. “It sort of makes it obvious that the debt limit itself is a pretty stupid idea.”..
Correct it is some sort of figurative activity… but just like the MMT figurative language “like points on a scoreboard!” or the figurative language “they never ask how we can afford the Defense money!”…. IT…. DOESNT….. WORK….
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