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RE: Macroeconomics

in #macroeconomics3 years ago

One of the things you said was "if it generates inflation, they rise interest". That's a monetarist/neoliberal approach. MMT would look at Government spending (switching from a quantity rule to a price rule) and taxation, using buffer stocks (such as a job guarantee program) as a price anchor.

Bill Mitchell wrote a couple of good blog posts to explain MMT's relationship with inflation and he wrote about some policy considerations at the end of this one:

http://bilbo.economicoutlook.net/blog/?p=13035

He ends by saying this: " The only way that demand-side policies should be used to effect when there is a supply-side motivated inflation is when there is an employment buffer stock system in place."

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Hey sir, I just got back here to say that I read some articles and you are right, they would control gov spendings and rise tributation. Sorry for my missception. Lots of people disagrees also, like Greg Mankiw, Paul Krugman, Warren buffett, saying it would lead to inflation and etc... (What is not ocurring at Japan). But what we are actually seen is the rise of interests, an ortodox keynesian fiscal policy, crazy, huh?! But thanks for the informations you provided early.