Thursday, February 28, 2019

Popcorn Time: Tmrw MMTer Attacks Paul Krugman

Stephanie Kelton
Former Bernie Sanders 2016 presidential adviser and hardcore proponent of socialist monetary Keynesian MMT policy, Stephanie Kelton, will have a response to Paul Krugman's criticism of MMT published tomorrow at Bloomberg.



  1. Who wants to bet this sounds a lot like AOC trying pose a cogent thought?

  2. Here it is. I haven't read it. I'll bet it all depends upon some truth of Keynesian analysis, like the mystery of what the government MUST do to attain full employment.

    Hey numbnuts, your modern corrupt unconstitutional money-by-keystroke system is what causes unemployment. History will judge you harshly.

  3. Stephanie writes:

    #1: Is there only one right deficit level? Answer: No. The right deficit depends on private behavior, which changes. MMT would set public spending always to the level required to achieve full employment, and then accept whatever deficit may result.

    The amount of public spending required to achieve full employment would be ZERO. Therefore, the associated deficit would also be ZERO.

  4. Correct me if I'm wrong, but I believe that when Kelton talks about "fiscal policy", she means the government creating funny fiat money out of nothing and spending it into existence.

    When she talks about "monetary policy", she means the central bank or the fed setting interest rates for funny fiat money loans created out of nothing by member banks. Lots of new money spent into existence by the treasury "works faster" than waiting for new loan proceeds to work their magic.