Bill Mitchell — Governments should not ‘cool’ an economy or cut deficits when there are millions unemployed still

It’s Wednesday and only a few items today. It seems that the mainstream economists are emerging again and making all sorts of claims that fiscal policy has to target lower deficits and monetary policy needs to tighten (interest rates rise) to stop our governments going broke and inflation going wild. It really is like a tired broken record, isn’t it. They have sort of gone underground during the crisis and more are thinking it is time to reassert the nonsense of the past. And so it goes....

Bill Mitchell – billy blog
Governments should not ‘cool’ an economy or cut deficits when there are millions unemployed still
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

http://bilbo.economicoutlook.net/blog/?p=48741