Is MMT Real? #4: J.W. Mason
RABBITHOLE
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Is More Spending Going to Lead to Inflation?
If wages rose rapidly inflation might also rise but probably there's no one simple story and certainly to the extent there is it's not about the quantity of money. A policy that really was about preventing inflation by cutting off spending as soon as we started to see inflation go up might also turn out to be a policy that would really limit wage gains at the bottom. The green new deal proposal which was the most ambitious during the primary campaign was about three percent of gDP over creative 15 years. If you introduce that level of new spending with no funding from taxes or anything else i don't think anybody should predict that’s going to lead to higher inflation, says David Frum.
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