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View Diary: Why deficits don't matter - the reality of government finance (116 comments)

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  •  Your opinion, please. . . (0+ / 0-)

    on this:

    It makes a great deal of sense to me, and I've been linking it in comments here and forwarding it to friends and family for the last 24 hours.  

    Isn't Krugman. . . uh, right about the "fiscal cliff" (referred to elsewhere here as Boehner's Bluff and the Repub Ramp)?

    •  I agree, so does MMT :) (1+ / 0-)
      Recommended by:

      Jamie Galbraith has a great article up at Salon -- he's not an MMTer, but accepts MMT description of our monetary and national accounting reality.

      There was a diary about his article yesterday that was very good.

    •  It makes sense to me. (0+ / 0-)

      But he is talking about political strategy, not economics, right?

      Might and Right are always fighting, in our youth it seems exciting. Right is always nearly winning, Might can hardly keep from grinning. -- Clarence Day

      by hestal on Sat Nov 10, 2012 at 06:23:58 AM PST

      [ Parent ]

    •  Yes, he is (2+ / 0-)
      Recommended by:
      katiec, psyched

      But MMT people have published a huge number of posts on the phoney fiscal cliff crisis for some time now. You can find some of them on the Money and Public Purpose blog I've linked to above. We've been warning about it for months and months.

      Krugman's latest post approaches the MMT line of reasoning very closely, in certain respects. But he wouldn't agree with us about what to do in the longer run. What that means is that he gives away too much to Peter Peterson and the other fix the debt people, by being unable to deny that they have a legitimate concern about the debt-to-GDP ratio. We just say that doesn't matter a damn. Past deficits and accumulated debts have nothing to do with current fiscal capacity if you have a sovereign fiat currency like the US.

      So, in any year, you go ahead with fiscal policy that will provide the best outcomes for full employment, price stability, and other valued outcomes.

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