by Summary:
SWL is still caught in the monetarist fallacy. MMT has two arguments against the golden rule, which I will call reasonable and unreasonable. The unreasonable argument is that interest rate increases do not reduce aggregate demand and inflation, and therefore fiscal policy has to play the macro stabilisation role at all times. It is an unreasonable claim because it contradicts the large amount of evidence that higher interest rates do reduce aggregate demand and inflation, evidence that you will find in the academic economic literature.Those who watch Mike Norman's YouTube channel, which is MMT-based financial analysis, will find evidence presented that contradicts this.Mainly MacroChallenges to the strong golden rule: MMT and bond market paranoiaSimon Wren-Lewis | Emeritus Professor of
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Mike Norman considers the following as important:
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SWL is still caught in the monetarist fallacy. SWL is still caught in the monetarist fallacy. MMT has two arguments against the golden rule, which I will call reasonable and unreasonable. The unreasonable argument is that interest rate increases do not reduce aggregate demand and inflation, and therefore fiscal policy has to play the macro stabilisation role at all times. It is an unreasonable claim because it contradicts the large amount of evidence that higher interest rates do reduce aggregate demand and inflation, evidence that you will find in the academic economic literature.Those who watch Mike Norman's YouTube channel, which is MMT-based financial analysis, will find evidence presented that contradicts this.Mainly MacroChallenges to the strong golden rule: MMT and bond market paranoiaSimon Wren-Lewis | Emeritus Professor of
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
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MMT has two arguments against the golden rule, which I will call reasonable and unreasonable. The unreasonable argument is that interest rate increases do not reduce aggregate demand and inflation, and therefore fiscal policy has to play the macro stabilisation role at all times. It is an unreasonable claim because it contradicts the large amount of evidence that higher interest rates do reduce aggregate demand and inflation, evidence that you will find in the academic economic literature.
Those who watch Mike Norman's YouTube channel, which is MMT-based financial analysis, will find evidence presented that contradicts this.
Mainly Macro
Challenges to the strong golden rule: MMT and bond market paranoia
Simon Wren-Lewis | Emeritus Professor of Economics, Oxford University
Challenges to the strong golden rule: MMT and bond market paranoia
Simon Wren-Lewis | Emeritus Professor of Economics, Oxford University