“Where is the [Social Security] crisis? Just over the horizon…the promises that are being made to those now working cannot be honored.” nytimes.com/1996/10/20/boo…
“I’m terrified about what will happen to interest rates once financial markets wake up to the implications of skyrocketing budget deficits.” nytimes.com/2003/03/11/opi…
“The only question now is when foreign investors, who have financed our deficits so far, will decide to pull the plug.”
nytimes.com/2005/03/04/opi…
nytimes.com/2005/03/04/opi…
“Couldn’t America still end up like Greece? Yes, of course. If investors decide we’re a banana republic whose politicians can’t or won’t come to grips with long-term problems, they will indeed stop buying our debt.” nytimes.com/2011/03/25/opi…
“Why are the interest rates on Italian and Japanese debt so different? I actually don’t have a firm view. But it seems to be an important puzzle to solve.” krugman.blogs.nytimes.com/2011/07/16/ita…
MMT:
Showed why gov’t could always pay SocSec
Said no reason to be “terrified” of bond vigilantes
Said foreign investors don’t “finance our deficits” & cannot “pull the plug”
Said the US would not “end up like Greece”
Solved the interest rate “puzzle” years ahead of m/stream
Showed why gov’t could always pay SocSec
Said no reason to be “terrified” of bond vigilantes
Said foreign investors don’t “finance our deficits” & cannot “pull the plug”
Said the US would not “end up like Greece”
Solved the interest rate “puzzle” years ahead of m/stream
I hate this p*ssing match. But it takes a lot to buck the conventional wisdom (as evidenced by this week’s backlash), and the MMTers stuck their necks out for decades, challenging received wisdom. History can judge us. bloombergquint.com/view/krugman-s…
To his credit, @paulkrugman has changed his mind on a lot of this. You can hear him explain those shifts in this debate. charlierose.com/videos/16934
Squirm with me, if you will.
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