Quite, quite, stunning – if only Ritchie knew that he was following Friedman

And that the government has no money of its own when by a stroke of a key it can however much it needs to deliver all the economic activity the economy is capable of sustaining.

We have known that for more than a century. And still we suffer from the myths. It’s time they were laid to rest.

Milton Friedman:

In 1948, in “A Monetary and Fiscal Framework for Economic Stability,”
he proposed that the government run a countercyclical budget policy with
monetization of deficits and demonetization of surpluses with budget balance
over the cycle.

Yes, they are talking about the same thing.


6 thoughts on “Quite, quite, stunning – if only Ritchie knew that he was following Friedman”

  1. I think Murphy would go apoplectic if you were to suggest that he had “followed” anyone in the fields of economics or tax.

    He’s already a good way to claiming to have invented MMT principles and I fancy he would also like to claim a large chunk of Keynsian theory as his own.

  2. That the government can ‘print money’ has indeed been long known.

    I’d be more impressed if he showed any awareness of the *other* end of the transaction. Printing money is equivalent to borrowing, and when you borrow money, you later have to repay it. This latter requirement is the bit that advocates for the government ‘printing money’ always leave out.

  3. I think it might have been the great Noel Scoper, who has done such sterling work chronicling the many U turns of Murphy who directed me to one thread where he accused Friedman of being ‘endless falsehood’ or something to that effect. He probably thinks he should get a Nobel Prize, rather than the Darwin award which he is uniquely suited for.

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