What a remarkable post I just read
Won't reproduce it here
It's boiler plate compassionate neo liberalism
Safety net capitalism
Collision Matt corporate containment
-----------
Seems the temple monkeys poop throwing has it's effect
Here MT is defending the legacy of Keynesianism
by saying
I am not a Hocksian schlock meistrt
I'm new Keynesian
In particular for convenience call me a Romerite
and links to an exposition to clarify
The prior post here
And
then he responds with a scattering of comments
That suggest anything the hicks model could do
the new Keynes models can do too
Okay the new Keynes model makes liquidity traps easier to assume away
err and they were assumed away in normal pre fall 08 driving eh?
If policy is the field of struggle
this is all moot
I think krugman somewhere suggests
the hicks model is ample guide for practical macro nautics
Why?
Because the model we need to guide the economy
only has to suggest a regimen of increased
fiscal borrowing
Used for direct spending or transfer payments
And or tax cuts
Will lift the production system out of the doldrums
"just set up up a feed back loop pard"
Precisely how fast and with what dosages
is plain flat out irrelevant
if fast recovery is policy
Get cracking
If there are other off setting considerations
like debt accumulation
or antithetically
Fears of accelerating product price inflation
They need head on engagement
with pre positioned arguments
If the economy will not spend the injected funds efficiently
Or at least there's uncertainty
That
Lots will ...god forbid... go to pay down household or corporate debt
Suggests what ? ... inject more
And hey what's so worng with debt relief
is that not a good?
To much energy that ought to press for recovery since fall 08
has been diverted effectively into academic Prufrocking
you set a goal
Say
5 % UE in 6 quarters
And then you make it happen
Using feed back
Hard to follow
Need a Euler equation ?
Unfortunately two generations of macronauts
Deeply wed to cyclops macro
Ie
Indy fed only macro
Ie de facto
household credit rations only
Suddenly Faced with a liquidity trap
they'd assumed away for thirty years
Were sent scrambling like volunteer fireme
fiscal macro oughta be more then a hand wave at the efficacy of autostablizers
I 'll go another step
Fiscal policy oughta be
the instrument of choice for stabilizing effective demand ...at all times
here in the US
credit policy should be it's hand maiden
Why ?
Well crediit policy driven macro in time over a few cycles brings on
a minsky moment
Followed by a balance sheet recession
Ie brings on what we got now
