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View Diary: Open thread for night owls: What Krugman & Stiglitz can tell us (197 comments)

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  •  Krugman argues that bonds are less inflationary (0+ / 0-)

    Krugman got a bit petulent with the MMTers a couple of years ago in making the case that Treasury bonds are less inflationary than an equivalent of money freshly issued by the Treasury.  Neither side made their arguments in that I understood very well, but based on Scott Fullwiler's arguments anyone who owns a bond can get freshly issued money for it by simply selling it to or pawning it at a commercial bank.

    I've not seen Stiglitz make that same error, but it wouldn't entirely surprise me.

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