Sunday, February 19, 2012

A few links on monetary theory

- Washington Post on MMT here. (HT - Jared Bernstein).

- I think Scott Sumner is concerned about the wrong people when it comes to monetary policy - my comment on it is here. I think the real concern is people who (1.) peddle folk economics arguments against stimulus, (2.) love to quote Hayek as an NGDP targeting advocate but then never seem to get around to promoting expansionary policy, and (3.) people who know nominal spending seems to increase but always jump into the fiscal debate on the side that's against increased spending, just because they have a stronger preference for monetary policy.

The magnitude of the problem for society posed by these groups probably goes in the order of #3, #1, #2.

The extent to which these groups frustrate me probably goes #2, #1, #3.

1 comment:

  1. Daniel I couldn't agree more. Sumner seems to attack his allies more than his enemies, its strange. The real problem is people who don't think stimulus (whether monetary or fiscal) can do any good or are ideologically opposed to either form for some reason.


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