Ep. 280 The Theory and History Needed to Refute Keynesianism and MMT
Bob Murphy Show
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The Impossibility of Sharp Cuts in Government Spending in a Recession
Krugman: If everyone in the world can move into massive trade surplus will all be fine. Ireland 1987 to 89 been there done that. Let's all devalue with an exclamation point also an interest rate story something like Denmark's sweet 92 to 2000 again, a large swing towards trade surplus. Every one of these stories says that you can have fiscal contraction without depressing the economy if and he's got if and caps. The depressing effects are offset by huge moves into trade surplus and or sharp declines in interest rates. Since the world as a whole can't move into surplus and since major economies already have very low interest rates, none of this is relevant to our current situation.
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