Andrew Lilico takes on Wynne Godley, based on his assumptions that all money is created by the private sector, so that the public sector is borrowing from the private sector, and therefore that all borrowing nets to zero in aggregate. He doesn't get consolidated non-govt net financial assets in aggregate with government providing the funding when the net is positive during a period — like some of the circuitists.
The Telegraph (UK)
Can public sector austerity coincide with private sector austerity?
Andrew Lilico | an economist with Europe Economics, and a member of the Shadow Monetary Policy Committee. He was formerly the Chief Economist of Policy Exchange.
(h/t Ash QB on FB)
