tag:blogger.com,1999:blog-2277215496195926573.post9134406564191779054..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: A not very clever article on banking by Tim Congdon.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-2277215496195926573.post-23740470246629375272017-08-17T08:52:44.648-07:002017-08-17T08:52:44.648-07:00Ok thanks I will check that out in more
detail,my...Ok thanks I will check that out in more<br /> detail,my misunderstanding.Vince Richardsonhttps://www.blogger.com/profile/16366495300835137386noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-76814877798415657842017-08-17T06:34:58.256-07:002017-08-17T06:34:58.256-07:00No: under the PM system (as they make clear), POLI...No: under the PM system (as they make clear), POLITICIANS decide the PROPORTION of GDP that goes to public spending (and quite right, as that's a political decision). Meanwhile the monetary authority decides how much stimulus we have, i.e. the excess of government spending over government income.<br /><br />E.g. monetary authority says "government spending shall exceed government income by 2% of GDP this year". Politicians then decide where that's done via say spending equal to 30% of GDP and income equal to 28%, or spending equal to 52% and income equal to 50%.Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-43767363119032389672017-08-17T01:22:02.971-07:002017-08-17T01:22:02.971-07:00Kind of a rhetorical question,I don' either.It...Kind of a rhetorical question,I don' either.It depends on your political standpoint as you say.<br />If we have a PM style Monetary Authority they would in effect decide on that ,so politicians are out of that loop.MMTers see this as the big problem with PM.Vince Richardsonhttps://www.blogger.com/profile/16366495300835137386noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-42008603393241178902017-08-16T23:46:33.511-07:002017-08-16T23:46:33.511-07:00Answer to what? If your question is "what'...Answer to what? If your question is "what's the optimum amount of public spending" my answer is: "darned if I know"! Shouldn't think that helps, but it's still a bit early in the morning and my brain doesn't normally get going till the 2nd cup of morning coffee...:-)Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-49419037106806961202017-08-16T17:48:05.385-07:002017-08-16T17:48:05.385-07:00It's took me while to grasp this,but it is cru...It's took me while to grasp this,but it is crucial to everything as I see it.I have enjoyed the journey to get here.But now I am here what is the elusive answer?Vince Richardsonhttps://www.blogger.com/profile/16366495300835137386noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-18525037557134404672017-08-16T10:00:02.529-07:002017-08-16T10:00:02.529-07:00The % of GDP going to public spending is an essent...The % of GDP going to public spending is an essentially POLITICAL question isn't it? That's the standard "left versus right" argument that takes place before every general election.Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-13460395443387310282017-08-16T06:00:15.413-07:002017-08-16T06:00:15.413-07:00Anything that demands more bank lending to get us ...Anything that demands more bank lending to get us out of here is doomed to fail with no other actions.See Japan for instance and relying on bank lending to do anything other than cause the next crash is foolhardy.<br />Interesting points on what should governments spend.If Keynes was advocating no more than 25% of GDP he would be incredulous as to what the modern states now spend.Anyhwere between 40 -55% of GDP I believe.This is another issue which I seldom see discussed,what is that opitimim level?And it is surely dependent on the state of the nations economy.Vince Richardsonhttps://www.blogger.com/profile/16366495300835137386noreply@blogger.com