Commentaries (some of them cheeky or provocative) on economic topics by Ralph Musgrave. This site is dedicated to Abba Lerner. I disagree with several claims made by Lerner, and made by his intellectual descendants, that is advocates of Modern Monetary Theory (MMT). But I regard MMT on balance as being a breath of fresh air for economics.
Saturday, 4 December 2010
The political right is barking mad.
As Scott Sumner says, when inflation was 4.1% and unemployment below 5% in 2007 the political right favoured stimulus. Now that inflation is 1.2% and unemployment near 10%, they think stimulus will be inflationary.
They really are totally and completely barking mad.