Scott Fullwiler
Paying for the #GreenNewDeal#Thread 6
— Paying for the Green New Deal (@payforgnd) December 23, 2019
Managing Inflation, pt. 2
Scott Fullwiler @stf18
1/#MMT is not "radical" for rethinking inflation.
Even those who've been running orthodox inflation policies are now questioning them. They didn't expect interest rates this low. pic.twitter.com/nL1Vgf0mVm
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— Paying for the Green New Deal (@payforgnd) December 23, 2019
Orthodoxy says that when unemployment goes down, inflation goes up. Well, “unemployment” has gone down, but inflation has *not* gone up! #MMT says: you need to understand what “unemployment” actually is. For starters: it is not U3. The take-home: don't raise interest rates. pic.twitter.com/NJzUzYonIB
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— Paying for the Green New Deal (@payforgnd) December 23, 2019
For the first time in over a decade, the number of *officially* unemployed people per available job is less than 1. But even at today’s local minimum, once we consider additional measurements of slack, we see that still there are not enough jobs for everyone who wants to work. pic.twitter.com/31gE5XiVXz
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— Paying for the Green New Deal (@payforgnd) December 23, 2019
As it turns out, the people who say they *do not* want a job are getting more jobs than those who are officially unemployed. pic.twitter.com/St9EAFdUGn
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— Paying for the Green New Deal (@payforgnd) December 23, 2019
The official unemployment rate is not telling you what's going on. Research from Kyle Mohr, Jacob Powell, @jshipleymusic, and @stf18 is consistent with what @billy_blog has found: the buffer stock is the involuntarily part-time. Those are the people who get hired first. pic.twitter.com/SXf7iF78qr
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— Paying for the Green New Deal (@payforgnd) December 23, 2019
Thirty-two percent of the people who want to work are getting jobs. That's the best we've done. So, no; unemployment is *not* really low. Yes; we *do* need a #JobGuarantee. And delivering a Job Guarantee means building inflation targets into modern macroeconomic policymaking. pic.twitter.com/DIAVUnNcme
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— Paying for the Green New Deal (@payforgnd) December 23, 2019
Increases in medical, shelter, food, and energy prices explain 80% of inflation over the past 30 years. These price increases are mostly *not* due to excess demand. It is not credible to posit that full employment would necessarily cause unacceptable inflation. pic.twitter.com/lIsvdjvfxh
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— Paying for the Green New Deal (@payforgnd) December 23, 2019
Whether it’s aggressive antitrust policies in the US, government-constrained hospital charges in Japan, or reduced growth in Medicare payments to hospitals and physicians, recent history shows that we can target inflation without manipulating interest rates. pic.twitter.com/bcfzDnZoDz
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— Paying for the Green New Deal (@payforgnd) December 23, 2019
We can also use the Congressional Budget Office (CBO) to help target inflation. Currently, the CBO makes forecasts of limited use. Instead of merely keeping score of spending vs. taxing, an augmented CBO would project pricing effects of legislative proposals. pic.twitter.com/mwnXqi64K2
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— Paying for the Green New Deal (@payforgnd) December 23, 2019
We’ve talked a lot about prices in this thread. But ultimately, #MMT isn’t about money. MMT shows that money isn't the constraint on what we can do. We will either pay for less #climatechange or more. We can afford either, financially. But less is better than more. pic.twitter.com/r4MsZjnmNx
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— Paying for the Green New Deal (@payforgnd) December 23, 2019
For the full video: https://t.co/OkD4LNE18J
Managing Inflation, pt. 2
by Scott Fullwiler @stf18
start time: 6h:10m
Previous threads in this series: https://t.co/zS0wEljJfK
Please stay tuned for our next thread!