Ritchie really doesn’t get this does he?

QE, bail out the banks, didn’t work. Peoples’s QE is fundamentally different, does indeed have the BoE print new money, identical to process banks use to create money to lend to businesses.

Proper version here.

Umm, QE did work, it wasn’t to bail out the banks, it was to prevent deflation and a Depression. It did that: that’s working.

And printing M0 is simply in no way at all the same as the method by which banks create M4 in the credit creation process.

Looks like Murph has forgotten what Milton Friedman taught us all about monetarism, eh?

And I would suggest that he takes a little less speed before talking on the radio really.

Still, at least he now admits that peoples’ QE would create inflation. Which printing more M0 and spending it into the economy will do. But he’s still missing the point. That QE is reversible when V returns to normal and peoples’ QE ain’t. So it will be a lot more inflationary than he is admitting.

Finally, was he described as “the” economic advisor to the Corbyn campaign? Or “an”? And how happy is Jezza with either?

Finally finally, how consistent is either with being charity grant funded? Isn’t that a little close to partisan party politics for that sort of funding?

5 thoughts on “Ritchie really doesn’t get this does he?”

  1. It must be amazing to live in a world where, without any thought at all, you just know that your first comfortable, intuitive response to any issue is for sure correct. And everyone else is just full of malice and jealousy.

  2. Oh Tim, you’re such a card.

    Murphy forgetting Friedman? You know damn well he’s never touched a book by Milton Friedman in his life.

    Actually, chances are he’s never touched a book that can’t be colored in with crayons in his life.

  3. Hypothetical and unlikely situation, but humour me:

    Through an unfortunate series of events Jeremy Corbyn ends up as PM. Murphy ends up as chief economic adviser.

    On day one, do the adults in the Treasury take Corbyn aside and say “this guys knows nothing about economics”? (Although neither does Corbyn, so he wouldn’t listen). If he attempted his money printing People’s QE would the head of the BoE assert his independence and tell him to get stuffed?

    I know the civil service is supposed to be independent, but surely they have some kind of responsibility not to destroy the country?

  4. Bloke in Costa Rica

    Anyone who puts the word “People’s”* in front of anything is pretty much by definition a wrong’un. It’s like “social” or “democratic” or “people’s social democratic”.

    * note placement of apostrophe, shoulda gorn ter Stoneyhurst etc..

  5. It’s fair to say that it (People’s QE) would be unlikely to cause the issues in the Weimar Republic or contemporary Zimbabwe, but it would still be clearly inflationary…..

    There is no way Murphy has ever read anything by Milton Firedman – look at the blog of Howard Reed – he rejoiced when Friedman died because he was ‘obviously a fascist’ for his advice to General Pinochet. The man is mad, sad and badly deranged….

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