ST Alpha - "I feel like I could use an econ refresher before I get myself in trouble trying to explain it any further." (Reading a Post)

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In response to "LIR: znu. I will admit, fiscal policy is not my jam. I'm trying to learn and understand it and generally speaking, I'm concerned -- nm" by oblique

I feel like I could use an econ refresher before I get myself in trouble trying to explain it any further.

Posted by znufrii Aug 3 '21, 13:51

I knew I should have held on to my old textbooks.

Responses:

Your old econ books would not work because the changes in the view of monetary policy has occurred because the real world didn't match up with -- (edited) - pmb Aug 3, 14:03 6
- My broad thinking is that monetary policy can only do so much. Changes in fiscal policy are needed as well, primarily to deconcentrate wealth - znufrii Aug 3, 14:06 5
  - They are tied together to a meaningful degree. Fiscal policy drives responses as you suggest. But the gist is that increased spending and deficits - pmb Aug 3, 14:15 4
    - The Fed doesn’t directly finance deficit spending though, which is the disconnect I’m seeing. -- nm - znufrii Aug 3, 14:19 2
      - This is somewhat old, but helps explain. It is based on how they react or help accommodate the deficits. -- (link) - pmb Aug 3, 14:40 1
        
        Here is a summary of MMT. As discussed it focuses on fiscal policy (the fed's involvement is how they react to the additional money in the system to -- (edited) - pmb Aug 3, 14:44
    - Too few people look at the economic impact of spending, just the balance sheet. If the gov't can spend $1 and return $3 in economic activity - TWuG Aug 3, 14:17

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