Monday, January 15, 2018

Economist James K. Galbraith isn’t celebrating Dow 25,000 — Greg Robb interviews James K. Galbraith


James K. Galbraith is a self-described "Galbraithian" (institutionalist) and also a supporter of MMT.

Market Watch
Economist James K. Galbraith isn’t celebrating Dow 25,000
Greg Robb is a senior reporter for MarketWatch interviews James K. Galbraith | Lloyd M. Bentsen Jr. Chair in Government/Business Relations and Professor of Government at the Lyndon B. Johnson School of Public Affairs, The University of Texas at Austin

2 comments:

Matt Franko said...

“As they raise the short rates, they are going to cause trouble. The main trouble they’ve been causing is the rise of the dollar with respect to everything else. ”


Wut?????

Tom Hickey said...

Economists in general believe that increasing the interest rate strengthens the currency in the fx market and lowers inflation. So do central banks in setting policy. It's an article of faith.

But the fact is that the changes in the interest rate result in contradictory consequences over time since raising the policy rate increases G (expansive) while also making credit more expensive in commercial lending (contractive).