Fiscalists and Monetarists

Just one more example of how the left and the right are not equal ends of the spectrum. One is (at least near) the reasonable center. The other is a radical and deluded fringe — despite their numbers.

I don’t think you could find a left/Keynesian/fiscalist-believing economist who would not stipulate to the spectacular, even miraculous powers of monetary policy — at least when inflation is up. Everybody saw what happened when Volcker eased in ’83: an economic turnaround within months — including unemployment. (This last observation lifted directly though not verbatim from Krugman’s book-tour speech a couple of years ago.)

On the other hand, you will find no shortage of right/monetary-believing economists who believe (or pretend to believe) that fiscal policy is powerless, “always and everywhere.” (Well, except when the fiscal policy consists of tax cuts…)

You have to ask: which group has its eyes closed, hands over its ears, and is humming loudly. “La la la la la la la…”







4 responses to “Fiscalists and Monetarists”

  1. jazzbumpa Avatar

    It’s not just that. They posit that you can balance the budget, deleverage private finance and have a strong dollar, all at the same time. They are proud of their incoherence.

    And it’s not just economics. You have right wing judicial activism – which they pretend to hate.

    Then, there is the pattern of lies on health care reform – death panels just being one prominent example. In fact they lie about everything, all the time.

    Conservatives has degenerated into regressives – a cadre of liars and the frankly insane holding sway over the ignorant. There is no point in even trying to be polite when talking about them. They have one goal: the restoration of an economically and politically elitist oligarchy, as was the case in the first part of the 20th century. To the detriment of us all, they have largely succeeded.

    We’re screwed.

  2. Erik Avatar

    I thought I’d give this blog a try. Been reading for about a month or so. You just postulate things, try citing your sources. It feels more like I am reading someone’s personal journal or a forum. Goodbye.

  3. Asymptosis Avatar

    ?? I cite sources constantly. ?? I didn’t in this post…

  4. jazzbumpa Avatar

    @ Eric –

    Try Modeled Behavior, Mankiw, or Mish for the POV Steve is talking about, at varying degrees of sanity.

    Consider what Simpson and Bowles have done. Listen to Mitch McConnel – or any lying Rethug, for god’s sake.

    Do you live under a rock?

    WTF – Really!