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.
Wednesday, 20 February 2019
This trick works every time.
Numerous economists do not seem to have worked out that any deflationary effect stemming from tighter bank regulations can very easily be made good by standard stimulatory measures. Examples of economists who have not tumbled to the latter point include the Vickers Commission and Malcolm Sawyer.
That cluelessness on the part of economists partly explains why politicians are putty in the hands of bankers.
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