Tuesday , January 28 2020
Home / Mike Norman Economics / The World of Monetary Policy, According to Christine Lagarde— Carolyn Look

The World of Monetary Policy, According to Christine Lagarde— Carolyn Look

Summary:
While Lagarde said MMT is no panacea, she didn’t reject it outright.“While it is tempting, when you look at the sort of mathematical modeling of it, and it seems to stand, there are big caveats about it, such as if the country is in a liquidity trap, such as if there is deflation. Well then, in those circumstances, it could possibly work for a short period of time probably, because interest rates stay low until such time when they start going up. And then it is a bit of a trap.”-- April 11, 2019, IMF press conference Interestingly, Christine Lagarde finds that MMT economist's modeling is solid, but she can't quite bring herself to follow though. Still progress, even so.BloombergThe World of Monetary Policy, According to Christine Lagarde Carolyn Look

Topics:
Mike Norman considers the following as important: , , ,

This could be interesting, too:

Mike Norman writes Bill Mitchell — Britain continues to defy Project Fear

Mike Norman writes Randy Wray — STATEMENT: House Budget Committee, “Reexamining the economic costs of debt”, Nov 20, 2019

Mike Norman writes Job Guarantee as a Policy Variable — Brian Romanchuk

Mike Norman writes Bill Mitchell — Tax the rich to counter carbon emissions not to get their money

While Lagarde said MMT is no panacea, she didn’t reject it outright.

“While it is tempting, when you look at the sort of mathematical modeling of it, and it seems to stand, there are big caveats about it, such as if the country is in a liquidity trap, such as if there is deflation. Well then, in those circumstances, it could possibly work for a short period of time probably, because interest rates stay low until such time when they start going up. And then it is a bit of a trap.”-- April 11, 2019, IMF press conference
Interestingly, Christine Lagarde finds that MMT economist's modeling is solid, but she can't quite bring herself to follow though. Still progress, even so.

Bloomberg
The World of Monetary Policy, According to Christine Lagarde

Carolyn Look
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

Leave a Reply

Your email address will not be published. Required fields are marked *