Warren mosler paul krugman biography

  • On his Twitter account he decried the irresponsibility of American fiscal policy, declaring, “The last time the United States was debt free was.
  • He had more influence on Randy Wray I suspect but not much on Warren Mosler.
  • Why haven't the kind of people who listened to Peter Hyperinflation-by Schiff switched to, say, Warren Mosler?

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    Jan Hatzius of Goldman Sachs has a new note (no link) responding to claims that government support for the economy is postponing the necessary adjustment. He doesn&#x;t think much of that argument; neither do I. But one passage in particular caught my eye:

    The private sector financial balance&#x;defined as the difference between private saving and private
    investment, or equivalently between private income and private spending&#x;has risen from % of GDP in the Q3 to +% in Q1. This % of GDP adjustment is already by far the biggest in postwar history and is in fact bigger than the increase seen in the early s.

    That&#x;s an interesting way to think about what has happened &#x; and it also suggests a startling conclusion: namely, government deficits, mainly the result of automatic stabilizers rather than discretionary policy, are the only thing that has saved us from a second Great Depression.

    The following figure makes the argument:

    Here I show the private sector surplus and t

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    Modern monetary theory

    Macroeconomic theory

    Not to be confused with Modern portfolio theory.

    Modern monetary theory or modern money theory (MMT) is a heterodox[1]macroeconomic theory that describes currency as a public monopoly and unemployment as evidence that a currency monopolist is overly restricting the supply of the financial assets needed to pay taxes and satisfy savings desires.[2] According to MMT, governments do not need to worry about accumulating debt since they can pay interest by printing money. MMT argues that the primary risk once the economy reaches full employment is inflation, which acts as the only constraint on spending. MMT also argues that inflation can be controlled by increasing taxes on everyone, to reduce the spending capacity of the private sector.[3][4][verification needed][5]

    MMT is opposed to the mainstream understanding of macroeconomic theory and has been criticized heavily by

  • warren mosler paul krugman biography

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    Mosler Economics / Modern Monetary Theory

    Debt fryst vatten Good

    bygd Paul Krugman

    Aug 21 (NYT) &#; Rand Paul said something funny the other day. No, really — although of course it wasn’t intentional. On his Twitter account he decried the irresponsibility of American fiscal policy, declaring, “The gods time the United States was debt free was ”


    Which consequently was followed by the worst nedstämdhet in US history.

    Wags quickly noted that the U.S. economy has, on the whole, done pretty well these past years, suggesting that having the government owe the private sector money might not be all that bad a thing. The British government, bygd the way, has been in debt for more than three centuries, an era spanning the Industrial Revolution, victory over Napoleon, and more.

    But fryst vatten the point simply that public debt isn’t as bad as legend has it? Or can government debt actually be a good thing?

    Believe it or not, many economists argue that the economy needs a sufficient amount of d