The case for growth
James Pethokoukis | Commentary
Growth works, improving everyone’s standard of living, if not always equally, at least steadily. Growth signifies the evolutionary and upward surge of mankind, evident in everything from modern medicine to interstellar space travel. And a policy geared toward increasing economic growth — pursued attentively and unapologetically — will save the US.
India To Become Bigger Than China Eventually: Raghuram Rajan
featuring Raghuram Rajan via The Times of India
India will eventually surpass China in economic size and will be in a better position to create the infrastructure being promised by the Chinese side in South Asian countries, former RBI governor Raghuram Rajan said on Tuesday.
WEF 2019: Raghuram Rajan Says Indian Economy May Slow Down If A Coalition Govt Is Formed
featuring Raghuram Rajan via Business Today
Former RBI governor Raghuram Rajan said there was a possibility that the Indian economy might slow down if a coalition government came to power after the 2019 Lok Sabha election. In an exclusive interview to India Today at the World Economic Forum in Davos, Rajan spoke on several issues that affected the Indian economy
India's Central Bank Needs Far Bigger Capital Buffer, Study Says
quoting Raghuram Rajan via Bloomberg
India’s central bank has insufficient capital, much less a surplus to hand over to the government, a new study shows.
CHINA'S NATIONAL ECONOMETRICS ARE MANIPULATED, THE NECESSITY OF INCLUSIVE GROWTH & INDIA'S FORMER CENTRAL BANKER RAJAN ON ECONOMIC GROWTH WITHOUT JOBS
China can’t get its economic story straight
Derek Scissors | AEIdeas
China announced its 2018 economic results Sunday night. They featured 6.4 percent annualized real gross domestic product growth in the fourth quarter. Real growth was announced at 6.8 percent in the first quarter. But do we know Q1’s 6.8 was right?
ASIA TIMES: FIXING CHINA'S NATIONAL ECONOMIC INDICIES
China Global Investment Tracker
Derek Scissors | China Global Investment Tracker
Is All Economic Growth Created Equal?
Oren Cass, The Bulwark
Imagine a button that would instantly double the productivity of the labor market’s most productive quintile, but also cause the least productive quintile to drop out of the labor force. Would you push the button? The top quintile is more productive to begin with, so the gain from doubling its productivity exceeds the loss at the bottom—the tradeoff leaves our economy more productive and output higher. Read more here....
PHOTO: ANN SCHWARTZ & MILTON FRIEDMAN: BOTH KNEW THE LIMITATIONS OF MONETARIST THOUGHT.
Modern Monetary Theory is a joke that’s not funny
Michael R. Strain | Bloomberg Opinion
The core assertion of Modern Monetary Theory -- that a government that prints its own money can always pay its bills -- is correct. Yet advocates of MMT fail to fully grapple with the inflationary risks that would come with treating government debt as wholly unimportant. With the central bank dedicated to financing the government, the task of managing inflation would become a fiscal matter, creating economic, political, and distributional problems far greater than those MMT seeks to solve. These issues are further discussed in this week's "Political Economy Podcast" with AEI scholars James Pethokoukis and Stan Veuger.
What is Modern Monetary Theory?
James Pethokoukis and Stan Veuger | "Political Economy Podcast"
On his latest podcast, James Pethokoukis talks Modern Monetary Theory with Stan Veuger. The two discuss why MMT has suddenly become so popular, the theory’s intellectual origins, whether it has anything new to say about economics, and the political and economic risks of using the theory as a basis for monetary — and, consequently, fiscal — policy.
Why Modern Monetary Theory is an unserious idea for an unserious time
James Pethokoukis | The Week
Is Modern Monetary Theory a fiscal cheat code for funding major expansion and creation of federal spending programs? The core observation -- that the government can always print money to pay its debt -- is true. But in practice MMT represents a mirror version of the Laffer Curve obsession seen among some on the right. Ultimately, policy decisions involve choices and trade-offs — and those presented under MMT are not appealing.
Debt denial is a threat to America
Desmond Lachman | The Wall Street Journal
Contrary to the claims of Modern Monetary Theory's advocates, deficits do matter. There is no guarantee that the US government will be able to borrow at low rates indefinitely, and with the deficit currently exceeding 5 percent of gross domestic product (GDP) and the debt exceeding 100 percent of GDP, the debt-to-GDP ratio is set to increase indefinitely. Increased deficits will lead investors to demand higher yields on government bonds, especially if they see higher risk of inflation or default. Taking these facts into account, MMT is a recipe for fiscal ruin.
Modern Monetary Theory and policy
Stan Veuger | AEI Economic Perspectives
Proponents of so-called Modern Monetary Theory emphasize that governments can always avoid defaulting on existing obligations denominated in a currency they themselves create. In many instances, they extrapolate from this correct observation to sweeping claims about the proper size of government and the role of monetary and fiscal policy. To the extent that these claims go beyond those of mainstream monetary doves, policymakers would be unwise to rely on them.
Modern Monetary Theory’s central idea is neither new nor helpful
Stan Veuger | AEIdeas
Exposing the flaws of Modern Monetary Theory: A short-read Q&A with Stan Veuger
James Pethokoukis | AEIdeas
John Taylor Sees 'Pretty Strong' U.S. Economy As 'Promising'
interview with John B. Taylor via Bloomberg
Hoover Institution fellow John Taylor discusses the Federal Reserve's rate path, US economic strength, and the partial US government shutdown.
The euro’s unhappy 20th birthday
Desmond Lachman | The Hill
Can the Euro Survive?
Robert Samuelson, Washington Post
An authority on Civil-Military Relations; Southwest Asian Political Economy, and Pentagon Acquisition Reform .
KEYNES VS. HAYEK RAP
KEYNES VS. HAYEK RAP ROUND 2