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View Diary: The President's Leverage: He Can Go Platinum (26 comments)

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  •  I wish Krugman (1+ / 0-)
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    RUNDOWN

    Had actually given the platinum coin idea serious treatment.  He's been very clear that he doesn't think in normal times the government can just print money to run all operations, and that he's not buying what the MMT folks are selling.  Okay, fine.   But that leaves open a lot of questions:

    1) How much money could the government print now without being inflationary?  What's the limit in a liquidity trap?

    2) Would the use of a coin to retire debt, that would otherwise not enter general circulation, have a different inflationary impact than the printing of money to pay for, for example, a five fold increase in Social Security benefits?

    3)  In normal times, outside of a liquidity trap, if the government cannot just print money to fund ALL operations, how much money can the government print?  Let's say that instead of funding 100% of government operations by borrowing money, we instead borrowed half the money and minted half the money.  Inflationary?  Come on Krugman, you love making line graphs to show this kind of stuff.

    •  Krugman irritates me. (3+ / 0-)
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      MPociask, RUNDOWN, psyched

      His closing, "Sorry." is an example. His tone is that he is talking to children. But he offers no facts in support of his dismissal.

      Anyhow, time will tell, and I predict that MMT, in some recognizable form, will prevail before I die. And I was born before WWII.

      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 Thu Jan 03, 2013 at 08:50:00 AM PST

      [ Parent ]

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