Do you think QE contributed to higher commodity and energy prices, as lower bond yields and interest rates encouraged more investors to move into those markets in search of higher returns? If so, what does this mean for your preferred zero interest rate policy? Wouldn’t this lead to more speculation in commodity markets, and thus higher inflation?

May I know your opinion on the Philippine stock market?

Best regards,

Renzie

and altering interest rates isn’t the same as altering fiscal balance. you did say you read the 7 dif?

once your working knowledge of monetary operations is in place we can move on to what remains problematic for you.

Anders: I don’t see why you can’t focus on structural private sector concerns whilst maintaining an MMT approach

That is exactly what I am interested in and that is what MMT refuses to do. Just follow the Warren’s and Neil’s comments above. “If all you have is a hammer then every problem looks like a nail”. MMT deprives itself of everything that deviates from its main line.

I have a suspicion that the MMT approach (supply NFA solving for inflation) is misplaced. Demand for NFA is both a symptom and a problem. I do not believe in the “cut taxes whenever there is unemployment” since that is exactly the same as “cut interest rates whenever there is whatever”. And now we are staring at the zero bound with no way further to go while guys like market monetarists gain the ground.

I do not see how the MMT approach solves THE problem. Not A problem of excessive demand for NFA because this demand is by definition always excessive. How can it be otherwise?! But THE problem whatever that is at any point of time. MMT sounds like if your engine starts burning oil just pump some more because oil is what it needs to run. Well, until it starts swimming in oil and breaks down beyond repair.

And the Warren’s response to my example of agricultural society with full employment and price stability is beyond any imagination. MMT clearly owns a monopoly on truth and nothing can be questioned. Instead of answers one gets “have you read that” and “have you read this”.

It is a pity.