Eric Lonergan — Bond bubbles, MMT, and the limits to fiscal policy

MMT-friendly.

sample of one
Bond bubbles, MMT, and the limits to fiscal policy
Eric Lonergan

ht/ Brad DeLong

Noah Smith — Bond bubbles

Noah appeals to Goodhart's Law.

 

Conversely, Warren Mosler recommends that the Fed set the overnight rate at zero permanently and provide unlimited liquidity to solvent members of the payments system, while Treasury should cease issuance of securities altogether, since they are operationally unnecessary for a country that floats its currency and doesn't borrow in a currency it doesn't issue.

Proposals for the Treasury, the Federal Reserve, the FDIC, and the Banking System 

Wouldn't this be inflationary? Not if the government manages economic policy on MMT principles.

Seven Deadly Innocent Frauds of Monetary Policy (Link to PDF, also available at Amazon here.)

Soft Currency Economics (Link to PDF, also available at Amazon here.)

Maybe Naoh should ask Charles Goodhart what he thinks about this.

Noahpinion
Bond bubbles
Noah Smith | Assistant Professor of Finance, Stony Brook University