Adair Turner: The Case for Monetary Finance – An Essentially Political Issue

“If we use money finance of fiscal deficits it will in all circumstances that you can possibly specify increase the level of aggregate nominal demand. And that in itself by the way has an important implication. And the implication is that faced with inadequate nominal demand governments and central banks never run out of ammunition. So we should never say that we face a problem of deficient nominal demand and there is no answer to it. There will always be an answer because there is always this answer. Which means that if we end up facing a secular stagnation for demand rather than supply reasons or a lowflation or a perpetual deflation that is always a policy choice and never an unavoidable necessity.” – Adair Turner

About Kristjan

Defitsiidi terrorismi vastase pataljoni eriüksuslane (finantsignorantsuse vastu võitlemise osakond). Treening: MMT, postkeinsism, Tartu Ülikool Majandusteadus
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