John has said monetary policy is appropriate for managing demand problems. That's tough to square with Jean Baptiste Say, but OK. I eagerly await his video promoting monetary stimulus (I am being sincere here - that would be a very good thing).
But something occurs to me: NGDP is awfully aggregated so sometimes we don't think about the implications of monetary policy. John does realize that a big part of the demand-side stimulus from increasing NGDP is going to come from increasing nominal consumption, doesn't he?
I'm curious how he squares that with his repeated assertions that consumption destroys value (I disagree - I tend to get value after I buy things for consumption).
You’ve Heard of Moneyball…
3 hours ago