tag:blogger.com,1999:blog-2098432983500045934.post7276569300270077748..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: Once more unto the breachThe Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2098432983500045934.post-58699835163432834052012-07-12T19:07:51.341-04:002012-07-12T19:07:51.341-04:00Hi Woj. When I evaluate economic circumstances and...Hi Woj. When I evaluate economic circumstances and seek solutions to problems, I am not hindered by my realism or my practicality :)<br /><br />If the thing that must be done is not legal, then perhaps we should change the law. Perhaps more knowledgeable people than myself would know ways to do the things I know must be done.<br /><br />On the other hand, Bernanke keeps saying he wants to find innovative solutions, and he wants to think outside the box and all.<br /><br />At Interfluidity, Steve <a href="http://www.interfluidity.com/v2/918.html" rel="nofollow">Waldman</a> wrote: "Rather than distributing cash directly, the central bank could make transfers by giving out free lottery tickets. The winnings from these lottery tickets would constitute transfers from the central bank to the public."<br /><br />Waldman: "Central banks can just adopt an old accounting fudge and claim that policy-motivated transfers purchase an intangible asset called 'goodwill'."<br /><br />Waldman: "I know this all sounds a bit crazy, a new normal under which central banks would print money to fund lottery payouts and then fake an asset on their balance sheets to offset the spending. But these are perfectly serious proposals."<br /><br />The first consideration <i>must</i> be that if we do not eliminate the economic problem, the economic problem will eliminate us. After that, I'm in favor of everything that fits.The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-6984303143416231552012-07-12T13:08:16.245-04:002012-07-12T13:08:16.245-04:00It's obviously difficult to make any inroads o...It's obviously difficult to make any inroads on this topic with Sumner (and many other MMs). One question though:<br />You mention "Rather than the Fed printing money and using it to buy up debt-as-assets, they should print money and use it to pay off debt-as-liability."<br />Based on my knowledge of the Fed, I'm not sure how they would legally do this. Do you have any specific ideas? Through purchases of either Treasuries or federally-insured MBS it seems the govt would still need to act in a manner to reduce the actual debt.Anonymoushttps://www.blogger.com/profile/00720722626969395929noreply@blogger.com