tag:blogger.com,1999:blog-4073216153962700110.post7893125618583032432..comments2023-07-15T04:51:17.650-04:00Comments on Smiling Dave's Blog of Psychology, Economics, and Gentle Sarcasm.: Are MMT and AE Compatible?Smiling Davehttp://www.blogger.com/profile/12898802942529057872noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4073216153962700110.post-85028440752249846432011-09-03T09:49:33.126-04:002011-09-03T09:49:33.126-04:00Meng,
Yep, I totally agree. I should add to the fa...Meng,<br />Yep, I totally agree. I should add to the fallacy list the following:<br />6. Zero interest rates do not create inflation, as proven in Japan.<br />7. Time Preference does not determine interest rates.Smiling Davehttps://www.blogger.com/profile/12898802942529057872noreply@blogger.comtag:blogger.com,1999:blog-4073216153962700110.post-17079547978504463262011-09-03T08:51:17.552-04:002011-09-03T08:51:17.552-04:00Have you ever read this curious paper ?
http://pra...Have you ever read this curious paper ?<br />http://pragcap.com/wp-content/uploads/2011/02/WP37-MoslerForstater.pdf<br />Mosler should have never heard about time preference. Interest rate is determined by time preference (TP). Low TP = low interest rate. High TP = high interest rate. <br />That the natural rate of interest should be zero... this story is somewhat fishy.MHhttps://www.blogger.com/profile/10656881172906444719noreply@blogger.com