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View Diary: NYT: It's Krugman Vs. Reinhart & Rogoff, Who Trivialize Their Incompetence And Attack “Left” (246 comments)

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  •  Interesting concept (4+ / 0-)

    Wheahter spending thru bond sales or printing more money any inflationary effect might be the same at the end of the day?

    .................expect us......................... FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

    by Roger Fox on Fri Apr 26, 2013 at 08:32:59 AM PDT

    [ Parent ]

    •  And inflation gets too high, people yell at (8+ / 0-)

      their Congress, and the currency gets withdrawn, and inflation goes down.

      Don't have the exact figure handy, but since we handed over issuance to the Fed in 1913, inflation has been something on the order of 2,100%. And nobody gets to pressure the Fed.

      iirc, the Populists of the 1890s wanted a State Bank which would issue loans at low, and non-compounding, interest. To cover the bad loans. So there's another route to getting the currency into circulation.


      Actual Democrats is the surest, quickest. route to More Democrats

      by Jim P on Fri Apr 26, 2013 at 08:55:27 AM PDT

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    •  Bond sales could be more inflationary... (1+ / 0-)
      Recommended by:
      Bluesee

      All other things being equal.  First, they pay interest.  Second, they get leveraged big time.

      Both bonds and currency are issued by the federal government.  There are two differences.
      1) Bonds pay interest from the government currency does not.
      2) You can pay your taxes directly with currency.  The government does not accept bonds directly for as payment of taxes.

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