In periods of deflation …(…)… there is no chance of significant real wage increases to ensure that the deterioration of the overall reward to labour in the economy is addressed.
As Keynes noted, nominal wages very rarely fall. Therefore in a period of deflation real wages rise.
Facepalm.
The argument that inflation is bad for those on wages is just wrong……… increases real earnings,
Whut?
Which he follows up with:
“Let’s be blunt, inflation always pays borrowers and costs lenders and so is a powerful tool for economic redistribution and I despair of the left when they cannot see that.”
Which muddies wealth with monetary assets, as many have previously pointed out on here?
But in any respect, does this not this clearly suggest why he supports MMT. Ie, it can be used as an instrument for inflation, by design, and which counters those protestations claiming that the tax raising side will prevent inflation?