Question: what is the comparative impact of the private sector's income from interest on loans vs. the impact of the 'trickle down' from asset inflation due to QE? Which one is better for Main Street? It seems Mosler thinks lending at higher interest is better (and not because lending is equated with productivity, but solely on the interest earned).
It would be interesting to see if Marshall Auerback differed from Mosler.
Super interesting article. Your middle section on interest as a source of income for the private sector and its absence as contractionary was better than reading 10 years of Austrians complaining about the Fed.
If I understand you correctly, this article points to a need for a very large infrastructure bill that creates jobs and raises wages, while at the same time we need to keep short term rates low to avoid the 'crash up - crash down' scenario you described.
Question: what is the comparative impact of the private sector's income from interest on loans vs. the impact of the 'trickle down' from asset inflation due to QE? Which one is better for Main Street? It seems Mosler thinks lending at higher interest is better (and not because lending is equated with productivity, but solely on the interest earned).
It would be interesting to see if Marshall Auerback differed from Mosler.
Super interesting article. Your middle section on interest as a source of income for the private sector and its absence as contractionary was better than reading 10 years of Austrians complaining about the Fed.
If I understand you correctly, this article points to a need for a very large infrastructure bill that creates jobs and raises wages, while at the same time we need to keep short term rates low to avoid the 'crash up - crash down' scenario you described.
crash up crash down, the US economy in a nutshell. ;-)