Or at least I don\’t do macro very well. But this seems ridiculous:
A policy of undermining the scarcity of capital through low interest rates
It\’s an astonishing thought that you can increase the supply of something by lowering the price of it.
Duncan does respond:
I’m arguing, with Keynes and lots of post-Keynesians, that ‘capital’ isn’t a commodity.
It can be created almost at will by banks. Given this it isn’t scare and therefore should be cheaper.
If banks can simply create capital almost at will then why in buggery is Lloyds launching a £25 billion rights and capital raising issue?
Clearly there\’s me not understanding some point about the macroeconomics that Duncan is proposing but at first glance this looks like the result of way too many of those spliffs that Professor \”Sacked\” Nutt thinks should be more available.