So basically, he's a guy who believes in tax cuts, and thinks that a gradual shift toward socialism would stimulate the economy. Interesting.
That's quite a hack... Instead of the Fed directly buying up everything, they have the Treasury buy everything, and then the Fed gives the Treasury the money to do it. Of course, I fail to see how that's "the economic equivalent of direct open-market operations in private assets."
These sound like some oddball theories to me. Then again, I'm not an economist. I'm sure some well-meaning user will chime in to flame to me the correct understanding of all this.
I'm not against someone recognizing the that government has a lot of levers to push when trying to "steer" the economy, but some levers should only be pushed as a last resort (such as government trying to stimulate demand by spending money).
Government should be the consumer of last resort, because they often do things very badly.
Comments 2
That's quite a hack... Instead of the Fed directly buying up everything, they have the Treasury buy everything, and then the Fed gives the Treasury the money to do it. Of course, I fail to see how that's "the economic equivalent of direct open-market operations in private assets."
These sound like some oddball theories to me. Then again, I'm not an economist. I'm sure some well-meaning user will chime in to flame to me the correct understanding of all this.
Reply
Government should be the consumer of last resort, because they often do things very badly.
Reply
Leave a comment