Re: C-FEPS report on Economists' Statement

[Warren Mosler <mosler@xxxxxxxxxxxxxx>]

--- pdavidso <pdavidso@xxxxxxx> wrote:
The fear of deficits that permeates
> mainstream economic theory is
> overblown -- but the political climate is NOT right
> for the CFEPS statement.

A couple of years ago I was at a meeting with
Art Laffer in California.  He got up to give
a talk on monetary policy, and began it something
like this 'I'm going to talk about monetary policy,
and Warren and Tom disagree, and they are right,
but this is the way I tell it.'  And then discussed
the money multiplier, how the Fed supplies reserves,
then the banks take those funds and make loans, etc.
in full knowledge that his story was dead wrong.
And he still tells it that way.
Guess he thinks the political climate isn't right...

Warren


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