tag:blogger.com,1999:blog-2098432983500045934.post7201781472853538876..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: Two Thought ExperimentsThe Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2098432983500045934.post-41875532083420304642018-06-14T02:05:13.096-04:002018-06-14T02:05:13.096-04:00From The real effects of debt by Stephen G Cecchet...From <a href="https://www.bis.org/publ/work352.pdf" rel="nofollow">The real effects of debt</a> by Stephen G Cecchetti, M S Mohanty and Fabrizio Zampolli (2011):<br /><br />"<b>It is important to note that our finding of a threshold for the effects of public debt on growth does not imply that authorities should aim at stabilising their debt at this level. On the contrary, since governments never know when an extraordinary shock will hit, it is wise to aim at keeping debt at levels well below this threshold.</b>"<br /><br />What I said, except not only <i>public</i> debt.<br /><br />And, and, and, and why is high debt NOT considered to be a "shock"? The implication seems to be that at some underlying level, Cecchetti et al still think high debt is perfectly normal.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-30268313238948921522016-10-18T06:31:33.622-04:002016-10-18T06:31:33.622-04:00Irving Fisher's instability is Hyman Minsky...Irving Fisher's instability is <a href="http://www.levyinstitute.org/pubs/wp127.pdf" rel="nofollow">Hyman Minsky's</a> instability.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-10947330124407071282016-01-25T08:18:36.006-05:002016-01-25T08:18:36.006-05:00Oh, my.
From The Debt-Deflation Theory of Great D...Oh, my.<br /><br />From <a href="https://fraser.stlouisfed.org/docs/meltzer/fisdeb33.pdf" rel="nofollow">The Debt-Deflation Theory of Great Depressions</a> by Irving Fisher:<br /><br />"<b>8. There may be equilibrium which, though stable, is so delicately poised that, after departure from it beyond certain limits, instability ensues, just as, at first, a stick may bend under strain, ready all the time to bend back, until a certain point is reached, when it breaks.</b>"<br /><br />Irving Fisher's stick is my two-by-four.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.com