tag:blogger.com,1999:blog-2098432983500045934.post5973911223989972835..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: From Krugman's "Notes on Deleveraging"The Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-2098432983500045934.post-10797854827089555032012-01-31T21:40:30.495-05:002012-01-31T21:40:30.495-05:00Okay, I get it. Fair enough!Okay, I get it. Fair enough!The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-39346343960274415772012-01-31T21:05:57.959-05:002012-01-31T21:05:57.959-05:00Where's the nonce?
The duration of the post.
...<i>Where's the nonce?</i><br /><br />The duration of the post.<br /><br />If Krugman consistently leaves financial-sector debt out of the picture when talking about debt in a variety of contexts, or otherwise indicates that he thinks fiance sector debt is generally of no consequence, then I will be proven wrong.<br /><br />Cheers!<br />JzBJazzbumpahttps://www.blogger.com/profile/07337490817307473659noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-54312992786710909182012-01-31T05:15:57.936-05:002012-01-31T05:15:57.936-05:00"My preference is to leave financial-sector d..."My preference is to leave financial-sector debt out of the picture, because it’s conceptually very different from nonfinancial debt." - PK<br /><br />Where's the nonce?The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-54804540022336656102012-01-30T23:51:52.307-05:002012-01-30T23:51:52.307-05:00He's not leaving it out of the picture. He...He's not leaving it out of the picture. He's setting it aside, for the nonce, to make another point more clear.<br /><br />Cheers!<br />JzBJazzbumpahttps://www.blogger.com/profile/07337490817307473659noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-54939652752247569792012-01-30T17:55:48.732-05:002012-01-30T17:55:48.732-05:00"Now that I've gone back and read the PK ..."Now that I've gone back and read the PK post, I see we're focusing on an aspect that ancillary to his point."<br /><br />What you call "ancillary" I call "premisses".<br /><br />I might agree with his main point. But if he thinks it is okay "to leave financial-sector debt out of the picture" then I cannot agree with him. Leaving debt out of the picture is THE problem.The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-63950632678152028242012-01-30T10:55:07.100-05:002012-01-30T10:55:07.100-05:00Now that I've gone back and read the PK post, ...Now that I've gone back and read the PK post, I see we're focusing on an aspect that ancillary to his point.<br /><br />He took finance debt out of the picture to make a specific point, and it's one you ought to be agreeing with.<br /><br /><i>So what you get is a seeming paradox: <b>once you realize that private debt is as much or more of a problem than public debt, </b>what you see is that Europe, where the key policymakers have preached the evils of debt and the need for austerity, is not making any progress in bringing debt problems under control — while we are. Of course, it’s not a paradox if you have been reading Richard Koo on balance sheet recessions, if you understood the importance of expansionary monetary policy, and if you had grasped the meaning of Sam and Janet.</i>Jazzbumpahttps://www.blogger.com/profile/07337490817307473659noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-18280382048171820452012-01-30T08:21:26.525-05:002012-01-30T08:21:26.525-05:00There is another error in there, as well.
Financi...There is another error in there, as well.<br /><br />Financial intermediaries don't just act in the way PK described. Regulation has fallen prey to rabid free-marketarianism. Finance sector debt was used in highly leveraged speculation on abstract derivatives.<br /><br />That is what brought down the whole house of cards.<br /><br />JzBJazzbumpahttps://www.blogger.com/profile/07337490817307473659noreply@blogger.com