Mankiw ripped

"the government can always print money to pay its bills. But that fact does not free the government from its intertemporal budget constraint." What intertemporal constraint ? The global system of social production remains finite And has limits at all times and places This is a tautology Where has anyone claimed magical powers of limitless extension at the present margin s of social production The limits are a frontier to be forced Till bottle necks overwhelm additional output and shortages become no longer a spur to more production of a given output at a certain quality But a chronic condition ------------------------------- "the economy normally operates with excess capacity , the economy’s output often falls short of its optimum." Indeed and it is the task of the peoples state to force out more production Then spontaneously emerges....at all levels and in all sectors " But that conclusion does not mean that policymakers only rarely need to worry about inflationary pressures." Here one considers demand pull inflationary Pressures The peoples state must arbitrate the combo of price increases and delivery delays And the estimated time frame of rectification ------------------------------- "in a world of pervasive market power, government price setting might improve private price setting as a matter of economic theory." "But that deduction does not imply that actual governments in actual economies can increase welfare by inserting themselves extensively in the price-setting process." If the firms set wages and prices Enter Lerner CO ordination markets To regulate over all limits If the target is firm level rents The system of use it or lose it enters the story This question of dynamic and structural rents remains open for vast investigation and social remedy Pay it forward The rent flush is a possible solution too