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well, that's one way of putting it...,
2011-08-15 17:27:21
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rick perry is a red...,
2011-08-17 12:59:39
SHORTER KRUGMAN:
"Fears of hyperinflation are good when you create them by printing money to buy treasury debt but they're bad when you create them by printing money to, say, buy treasury debt."
I'm not completely sold on neo-chartalism, but grant that outside econ textbooks the basic premise is beyond dispute. It's something of a relief that now that Paul Krugman has finally stopped offering strawman arguments that MMT doesn't predict inflation he's instead resorted to making completely incoherent, self-contradictory arguments about the dangers of printing money.
In any case I'm pretty sure the neo-chartalist responds to inflation (or, presumably, strong signals thereof) by cutting deficits -- is this not their point, that you raise deficits until you hit either some arbitrary level of employment or some arbitrary level of inflation, whichever comes first, not some arbitrary level of fear, "uncertainty", debt ratio, or interest paymens -- so Krugman's new argument is still sort of an Aunt Sally.
:: posted by buermann @ 2011-08-16 15:29:46 CST |
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