Here's an MMT proponent claiming that the liquidity trap we are in now is unimportant.
http://bilbo.economicoutlook.net/blog/?p=15168
Unimportant in that we should always just deficit spend to meet all our needs, or something like that. So a liquidity trap is, by this interpretation of MMT, not required to justify this.
I'm inclined to think, as Krugman does, that MMT goes a bit too far. But much bigger deficits are called for now because of liquidity trap, unemployment, and so on.
http://bilbo.economicoutlook.net/blog/?p=15168
Unimportant in that we should always just deficit spend to meet all our needs, or something like that. So a liquidity trap is, by this interpretation of MMT, not required to justify this.
I'm inclined to think, as Krugman does, that MMT goes a bit too far. But much bigger deficits are called for now because of liquidity trap, unemployment, and so on.
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