Thursday, 26 June 2014
Is Scott Sumner still a market monetarist?
I’m amazed by this passage from a recent post by Scott: “Since 2008, the UK has run extremely large budget deficits, bigger than the US as a share of GDP. Everyone agrees these are too large, and need to be reduced. But Keynesians have argued that austerity should be very gradual, to avoid derailing the recovery. That’s a fair argument…”.
That’s in stark contrast to his previous pronouncements to the effect that fiscal stimulus is a waste of time, Keynsians are deluded, MMT (which incorporates a fair amount of fiscal in the type of stimulus it advocates) is nonsense, etc etc.
I’m now baffled as to what Scott’s “Market Monetarism” actually consists of. Assistance appreciated. However, I suspect he has changed his mind, but hasn’t realized it or doesn’t want to admit it.