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Well yes. If you define all other economists, including Bofinger or Krugman as cargo-cultists, leaving only the members of your sect as economists, then you have majority.

That is a quite apt description of what the neoclassicals have been doing.

Incidentally, I never claimed that I had a majority on the issue of whether subsidising private bondholders reduced inflation. I claimed that I was right as a matter of fact.

Furthermore you seem to confuse the national asset stock with the national debt,

Uh, no. What I said is that the quote-unquote "national debt" is the monetary base. If you eliminate the "national debt," you eliminate all state money in the economy. And that would be bad.

monetary growth with a deficit,

The two are the same.

In this cause a balanced budget over the cycle would indeed be wrong, but I don't share your assumptions

Those are not my assumptions, they are how fiat currencies work. Go check the Bank of International Settlements Working Paper 292, p. 19-21 if you don't want to take my word for it.

- Jake

Austerity can only be implemented in the shadow of a concentration camp.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun Aug 14th, 2011 at 05:21:15 PM EST
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