DeanBaker13Jan 21, 2023
more on debts, deficits and the which way is up problem in economics https://cepr.net/debt-deficits-secular-stagnation-and-the-which-way-is-up-problem-in-economics/
Debt, Deficits, Secular Stagnation and the Which Way Is Up Problem in Economics

The economy can have a problem of too much demand, leading to serious inflationary pressures. It can also have a problem of too little demand, leading to slow growth and unemployment. But can it have both at the same time? Apparently, the leading lights in economic policy circles seem to think so. As I noted […]

Center for Economic and Policy Research
Show threadMark Copelovitch
@DeanBaker13 👍 Glad you brought up 🇯🇵. All of these bad arguments about the fierce urgency of doing something about 🇺🇸 debt ignore international money & finance & the near-total lack of hard fiscal constraints on countries, like 🇯🇵 & 🇺🇸, that have floating exchange rates & issue reserve currencies in an era of unprecedented global capital flows. You don’t need MMT. It’s just basic open economy macro https://www.markcopelovitch.com/post/how-much-debt-is-too-much-next-question-please
How Much Debt Is Too Much? Next Question, Please

On economic policy, the early signs from the new Biden administration are encouraging. President Biden has nominated a top-notch team of economic policy advisers, including former Federal Reserve Chair, Janet Yellen, as Treasury Secretary. He has proposed an ambitious $1.9 trillion economic recovery plan, aiming to “go big” with aid for state and local governments, more direct aid for households and firms, expanded unemployment insurance, and a range of anti-poverty initiatives. In stark contras

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Jan 21, 2023 at 10:01pmMastodon for iOS