tag:blogger.com,1999:blog-2277215496195926573.post1527883170263828486..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: Osborne is clueless on the structural deficit.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2277215496195926573.post-28880684302156213802012-03-15T05:08:09.056-07:002012-03-15T05:08:09.056-07:00Neil, Yes – “the structural deficit” and NAIRU are...Neil, Yes – “the structural deficit” and NAIRU are similar in that they are both indispensable theoretical ideas, and both are difficult to quantify. At least I find NAIRU or some alternative phrase like “natural level” to be indispensable. Also Bill Mitchell, the world’s most vehement opponent of NAIRU goes and produces his own phrase for the same idea: “inflation barrier”.<br /><br />It’s a bit like the square root of minus one: no one knows what it is, but it keeps popping up in maths (so I understand).<br /><br />It’s a pity the above two are not easily quantified, but that’s just something we have to live with. Making a judgement on whether an increase in demand will be inflationary is a judgement that governments just can’t avoid.Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-13347554293852581802012-03-15T03:44:04.938-07:002012-03-15T03:44:04.938-07:00That's because they are talking crap.
They do...That's because they are talking crap.<br /><br />They don't even know what the structural deficit is. Like NAIRU it's near impossible to measure.<br /><br />So they are talking in airy-fairy terms using big words that sound clever.<br /><br />But essentially the politicians - and the people that advise them - are clueless.NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.com