Winterspeak speaks:
The government mustn't "facilitate the wealth accumulation process by providing the net financial assets to help the private sector monetize this real wealth". It must correctly fund the private sector's demand for net financial assets (equity) so as to maintain full voluntary employment, without politically unacceptable levels of inflation.
Except that the market does not require the government to maintain full voluntary employment. Inflation in the form of fiat money and credit creation distorts the price, investment and capital structure and distorts the process of economic calculation. It is the government's use of fiat money and credit creation that causes the distortions that lead to unemployment and poverty. The MMTers "solution" is the cause of the problem. They are proudly oblivious to this analysis
No comments:
Post a Comment