Mosler Comments on Wolf

May 3rd, 2014
in Op Ed

by Dirk Ehnts, Econoblog101

There is a nice comment by Warren Mosler on an FT article by Martin Wolf. You can see very clearly the differences in thinking. I side with Warren Mosler, who is correct to point out mainly that deficit spending by the public sector is an available way out for those countries that have a sovereign currency (not the euro zone).

Follow up:

Of course, one could just dismiss this discussion and say that Mosler is basically a financial market guy and Wolf a journalist, and both are maximizing their own utility function, but that would be completely wrong. This is about ideas, and Wolf just ignores the one big idea - more deficit spending to stabilize the economy - that we learned (and unlearned) from the aftermath of the Great Depression. Mosler is correct in pointing that out.

And by the way: an economy "fed" by deficit spending is incredibly boring for bankers (and doesn't allow big profits), as the example of Japan in the last two decades has shown. The private sector is repaying loans but not taking out many new ones, and government bonds cannot be speculated against if the institutions - interplay of treasury with central bank - are working correctly.










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved