New answers tagged united-states
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The annual inflation was 5.8% in March 2021 in Russia. There are many reasons for this inflationary pressure such as the weakening of the ruble (Russian Currency) in comparison to the United States dollar. There is another reason for high inflation due to high government spending at the end of 2020 and at the beginning of the year 2021. In comparison to ...
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First of all, the headline of this post "Is modern monetary theory sustainable?" is really misleading and shows how common it is to misunderstand what MMT is hence it's important to describe here what MMT is. Therefore i have edited the post to remove references to MMT.
"they all seem to be simply printing their way out of any issues with ...
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What was the annual real growth rate in the US from 2010 to 2015?
I presume you mean growth rate of output. You can see the quarterly real growth rate in the US from 2010 to 2015 below (source Fred) with average quarterly growth rate being 0.6%:
According to the Quantity Equation the US therefore had a yearly real growth of more than 13% in this period?
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MMT is propounding to be a theory. A theory can't be sustainable or unsustainable. However, I think you meant to ask if the policy proposals of MMT-ers would be sustainable so I will answer assuming that is your question.
Now MMT is not a proper scientific economic theory* as it is not rigorously defined (Mankiw 2020), so it is not actually clear what MMT ...
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Yes inflating asset prices does not count as an inflation generally speaking although your friend's explanation is incorrect.
Fed is not an authority that decides how inflation is defined. Inflation is generally in academic literature simply defined as (Lebow & Rudd, 2016)
Inflation measurement is the process whereby changes in the prices of individual ...
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In the 70s U.S. Fed policy was in disarray and Fed was not following consistent monetary policy (at least not by present day standards). Generally monetary scholars characterize the Fed monetary policy in the 70s as "go-stop" policy. As argued by Goodfriend (2007):
At the heart of the disarray in monetary policy practice in the 1970s was the
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