Letter in today’s Financial Times which is very much in line with Modern MonetaryTheory (MMT) and Positive Money’s ideas, namely that in a recession the government / central bank machine should simply create new money and spend it into the economy (and/or cut taxes).
The letter goes off the rails at one or two points, I think, but it’s good to see MMT and Pos Mon ideas out there.
In contrast to the above ideas, the authorities’ response to a credit crunch brought about by excessive and irresponsible borrowing was to cut interest rates and implement QE so as to encourage more borrowing. You couldn’t make it up, could you?
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