QE doesn’t help expand the money supply, says Prof Steve Keen. The only way to help the economy is to expand government spending. Here’s why.
Phil talks to Prof Steve Keen on the lies and misunderstands of the economics profession
Could some of the bonds issued y government be given to people as a form of basic income? So, when times are tough, government debt is highest, and people get more? I discuss the idea with @profstevekeen o the latest Debunking Economics podcast.
Would a job guarantee resolve the battle between inflation and unemployment? Conventional economists argue that when the labour market is tight – and there are few jobs to go around – people ask for more money and that creates inflation. When there are very few jobs – like now – inflation is much lower. The counter argument, from Modern Monetary Theorists, is that a job guarantee would reduce this flux, whilst improving the lifestyles and wellbeing of the population. This week Phil Dobbie asks Steve Keen whether the MMT have got the logic right and, even if they have, can it be practically applied?
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Even now, central banks cling to the idea of NAIRU – a point at which unemployment gets so low inflation kicks off. But, with the US fed now expecting interest rates to remain close to zero for three years at least, Phil Dobbie asks Prof Steve Keen whether they have they abandoned the idea of NAIRU?
Has the agreed stimulus package in Europe signposted a new cooperative era for the bloc? A fiscal and monetary union.
Markets are cautious today. It’s not just rising COVID numbers, says NAB’s Tapas Strickland, the US election next week could be more contestable than we thought. https://t.co/w64bTe4mPU