Edit: Quote from Scott Sumner

I wasn’t able to fully grasp how MMTers (“modern monetary theorists”) think about monetary economics (despite a good-faith attempt), but a few things I read shed a bit of light on the subject. My theory is that they focus too much on the visible, the concrete, the accounting, the institutions, and not enough on the […]

Comments on Summers latest

The deficit hawks have ripped the headline deficit doves to shreds. The problem is the deficit doves, as previously discussed. Again, here’s why: How to avoid our own lost decade By Lawrence Summers June 12 (FT) — Even with the 2008-2009 policy effort that successfully prevented financial collapse, the US is now halfway to a […]

Obama/Summers innocent subversion

[Skip to the end] Further evidence of a deliberate policy that undermines our standard of living: >    >   (email exchange) >    >   On Fri, Oct 16, 2009 at 10:27 AM, Roger wrote: >    Larry Summers was just quoted on the morning news, as saying “We want the US to transition from a consumer-based to an export-based economy.” […]

The upcoming fiscal policy changes

Another possibility is the Fed doesn’t want to cut rates due to inflation risks, and might see a tax cut as sufficient potential support for demand to allow them to not cut rates and instead address the inflation issue. This would be based on the mainstream notion (not mine) that monetary policy is for inflation, […]