P³ on Andy Haldane and inflation:
It was at this juncture that I realised I was reading the work of someone who I think I can appropriately describe as a fool.
Basically, Haldane says that the increase in the money supply might come through as inflation, might not. We’ll see.
The P³ insists that it cannot because if it did then QE would have to be reversed and that would shatter his MMT projections. So, therefore, it won’t.
The beauty of this is that if increased money supply doesn’t juice the economy then MMT wouldn’t work at all. Yet P³ wants to insist that it does but also that there will be no inflation.