by Summary:
Simple stock-flow analogy using faucet, sink, and drain. Too simplistic, maybe, but it gets the fundamental point across. What this analogy focuses on is inflation and the sweet spot. But there is also not enough flow so that stock becomes low (deflation). The available policy space is between inflation and deflation. The sweet spot is optimal deployment of real sources including human resources (full employment). This would be difficult to impossible to hit using discretionary fiscal policy alone. The residual is handled with automatic stabilization and a guaranteed job opportunity that matches workers with work in their locale. MarketplaceEver heard of modern monetary theory?Kai Ryssdal, Maria Hollenhorst, and Rose Conlon
Topics:
Mike Norman considers the following as important: MMT
This could be interesting, too:
Simple stock-flow analogy using faucet, sink, and drain. Too simplistic, maybe, but it gets the fundamental point across. What this analogy focuses on is inflation and the sweet spot. But there is also not enough flow so that stock becomes low (deflation). The available policy space is between inflation and deflation. The sweet spot is optimal deployment of real sources including human resources (full employment). This would be difficult to impossible to hit using discretionary fiscal policy alone. The residual is handled with automatic stabilization and a guaranteed job opportunity that matches workers with work in their locale. MarketplaceEver heard of modern monetary theory?Kai Ryssdal, Maria Hollenhorst, and Rose Conlon
Topics:
Mike Norman considers the following as important: 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
Matias Vernengo writes On central bank independence, and Brazilian monetary policy
Michael Hudson writes International Trade and MMT with Keen, Hudson
Simple stock-flow analogy using faucet, sink, and drain. Too simplistic, maybe, but it gets the fundamental point across.
What this analogy focuses on is inflation and the sweet spot. But there is also not enough flow so that stock becomes low (deflation).
The available policy space is between inflation and deflation. The sweet spot is optimal deployment of real sources including human resources (full employment).
This would be difficult to impossible to hit using discretionary fiscal policy alone. The residual is handled with automatic stabilization and a guaranteed job opportunity that matches workers with work in their locale.
Ever heard of modern monetary theory?
Kai Ryssdal, Maria Hollenhorst, and Rose Conlon