7 Responses

  1. I bet it takes another war to get nations to freely use fiat money, and then each one will quickly forget again afterwards. It is like Sartre said of the French people during the war, they were at their highest state of freedom when under Nazi invasion – when your left with no choices, you are most free from your own self imposed ones.

    1. @Roger, Roger,
      This time i propose USA to invade Canada thus US citizens may have direct experience of the most stupid invention of humanity, namely a war. I can supply you too with the first hand experience of slavery which is having no choices except death. Do you want me to become your master ?

  2. What would Keynes say if he were still with us?

    Surely that we have been here before. WW2 was remarkable experiment. Fiscal deficit in the US rose to 30% of gdp in the first year and was 20% in subsequent years, if Im not mistaken. Alvin Hansen had some figures in his book Fiscal Policy and Business Cycles. Yearly growth was 17%.

    It is odd how badly this is remembered. This did not happen in antique, not in the 19th century even. It is relatively recent experiment, mere 68 years ago. Economic profession is suffering from collective amnesia, it does not fit their dogma I presume. Keynes must be rolling in his grave.

    And in Britain “public debt” was 250% of GDP 68 years ago. In todays figures debts were about 3 trillion pounds – 3000 billion – higher. Let’s say a courageous leader would take even a third, 1000 billion of that apparent “fiscal room” and use it to invest in world class R&D, education and infrastucture, instead of trying to find savings of few billion here, few billion there. Enough with this fiddling with small numbers. Britain could be a very prosperous nation in no time.

    WW2 should be perfect talking point for Keynesians but it is hardly ever used.

    1. @PZ, you have no idea what you are taking about. Keynes would be rolling in his grave if he knew a canal of dimwits es Lernerians was proposing their solutions in his name.

      1. @Johnathan Stein, Marcos’s posts are deleted whenever there is an attempt to provide such a reply. Only Warren is capable of effectuating the change that is needed, not PK, not MMT, and not crawlin roach.

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