by Summary:
I've run across yet more lazy critiques of Modern Monetary Theory (MMT), arguing that "MMT says governments should just print money to stop the virus!", or similar nonsense. I may only be speaking for myself, my reading of MMT would lead to cautiousness with respect to the limits of fiscal policy at present. Given that we face considerable constraints on output capacity, we can see theoretical inflationary risks if fiscal policy was too active. (My base case view is in line with the collapsing inflation-linked market: inflation is likely to head lower, given the swoon in energy prices.) Bond EconomicsTargeted Versus Non-Targeted Stimulus Brian Romanchuk
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Mike Norman considers the following as important: coronavirus, fiscal intervention, MMT
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I've run across yet more lazy critiques of Modern Monetary Theory (MMT), arguing that "MMT says governments should just print money to stop the virus!", or similar nonsense. I may only be speaking for myself, my reading of MMT would lead to cautiousness with respect to the limits of fiscal policy at present. Given that we face considerable constraints on output capacity, we can see theoretical inflationary risks if fiscal policy was too active. (My base case view is in line with the collapsing inflation-linked market: inflation is likely to head lower, given the swoon in energy prices.) Bond EconomicsTargeted Versus Non-Targeted Stimulus Brian Romanchuk
Topics:
Mike Norman considers the following as important: coronavirus, fiscal intervention, MMT
This could be interesting, too:
Mike Norman writes Jared Bernstein, total idiot. You have to see this to believe it.
Steve Roth writes MMT and the Wealth of Nations, Revisited
NewDealdemocrat writes Coronavirus update through October 30, 2023
NewDealdemocrat writes Coronavirus update: the virus is back; everyone should return to their prior precautions and get boosted this fall
I've run across yet more lazy critiques of Modern Monetary Theory (MMT), arguing that "MMT says governments should just print money to stop the virus!", or similar nonsense. I may only be speaking for myself, my reading of MMT would lead to cautiousness with respect to the limits of fiscal policy at present. Given that we face considerable constraints on output capacity, we can see theoretical inflationary risks if fiscal policy was too active. (My base case view is in line with the collapsing inflation-linked market: inflation is likely to head lower, given the swoon in energy prices.)Bond Economics
Targeted Versus Non-Targeted Stimulus
Brian Romanchuk