Do Deficits Matter? (MMT Explained)
The Rhodes Center Podcast with Mark Blyth
00:00
Is There a Capa Constraint in the Output Gap?
Labour has so little pricing power in bor markets that you can have lots of people employed in incredibly low and or stagnant wages for a very long period of time. And then as we average thus out and try to calculate g d p an, the output gap and all the rest of it, it looks like that's full employment. But basically, what youe said in the book is we've got way to go before we get to that, before we really het those capacity constraints. So yet it's impossible. I wish we could take out the binoculars and see where the limits on the horizon are and perfectly, you know, anticipate and respect those.
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