Friday, December 30, 2011

Mosler makes the Economist

Warren Mosler has made it into the Economist. Nice way to end the year!

People thought that blogs would replace journalism--and that isn't true. But blogs are influential because journalists read blogs. They need to feed the Beast, and they Google just like you or I. MMT's influence in the blogosphere can rival that of the academy, and seeing Warren in the Economist is proof of that.

It's unsurprising that Market Monetarism gets the kindest write-up as it is essentially orthodox Monetarism taken to its logical extreme. This is great, because it makes the absurdities clearer:
In pursuing this target, the central bank would use many of the same tools as today: tweaking the short-term interest rate and, when that reaches zero, increasing NGDP by printing new money to buy more assets (ie, quantitative easing). And the very creation of the NGDP target would make such intervention more effective, Mr Sumner says. If people expect the central bank to return spending to a 5% growth path, their beliefs will help get it there. Firms will hire, confident that their revenues will expand; people will open their wallets, confident of keeping their jobs. Those hoarding cash will spend it or invest it, because they know that either output or prices will be higher in the future.
Confidence fairies and more quantitative easing. Ho hum.


Blogger Warren Mosler said...

happy new year!


4:39 AM  
Blogger winterspeak said...

happy new year to you too warren!

thanks for all you've taught me in 2011. Here's looking forward to MMT making more inroad in 2012.

10:03 PM  

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