Understanding the Permanent Floor—An Important Inconsistency in Neoclassical Monetary Economics

by Scott Fullwiler, New Economic Perspectives I’ve written numerous times already about how a deficit “financed” by bonds vs. “money” doesn’t matter in terms of inflationary effect.  Notwithstanding my views there (which are not discussed in this post), the point of this post will be to explore the neoclassical paradigm on this matter, since this …