Simon Wren-Lewis
(Oxford economics prof.) suggests that at the zero bound, stimulus should be
part monetary and part fiscal. Well now that mix of monetary and fiscal is what
advocates of Modern Monetary Theory want, I think. Plus it’s what Positive
Money and co-authors of this work
want. At least the latter two groups want stimulus to take the form of simply creating
new money and spending it (and/or cutting taxes).
Glad we’re all agreed on that.
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