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Paul Krugman |
Paul Krugman is often terrible when it comes to economic policy but next to MMTers, he appears as though he is a reality-based economist.
That's how bad the MMTers are.
Krugman tweets:
So one thing I learned from the past few days of discussion is that MMTers believe that budget deficits necessarily increase the money supply. That's an interesting view, where by "interesting" I mean "completely wrong" 1/— Paul Krugman (@paulkrugman) March 2, 2019
It's wrong conceptually, bc govs can finance deficits by selling bonds not printing money; and it's wrong empirically. Here's changes in US debt and monetary base from 1980-1986 2/ pic.twitter.com/RUQdDduy14— Paul Krugman (@paulkrugman) March 2, 2019
I chose that period because it's the Reagan/Volcker loose fiscal/tight money era. Debt rose almost $1 trillion, monetary base only $65 billion (and fell in real terms). So this view is just wrong, and obviously so 3/— Paul Krugman (@paulkrugman) March 2, 2019
-RWMainstream Keynesians have been coddling the MMTers, basically trying to find ways their views might make sense. It's looking more and more like a losing game; their hearts may be in the right place, but their heads really aren't 4/— Paul Krugman (@paulkrugman) March 2, 2019
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