The US Federal Reserve has two imperatives: keeping #employment high and #inflation low. But when these come into conflict - when unemployment goes zero-ish - the Fed forgets about #FullEmployment and cranks up #InterestRates to "cool the economy" (that is, "to destroy #jobs and increase #unemployment").
If you'd like an essay-formatted version of this thread to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2023/01/19/creditors-vs-workers/#finance-colored-glasses
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Because you are challenging the dogmas of macroeconomics in a way that is vaguely reminiscent of a heterodox theory like MMT?
@post Why would you assume that means I *haven't* heard of it, rather than that I *had*?
Ah OK, welcome! I have spread MMT in Italy since 2011 but I am not very aware of the latest developments in the English-speaking area
@post My next two novels (Red Team Blues, The Lost Cause) are both MMT-inflected. Maybe they'll be translated into Italian - I've got a new publisher there!
Nice, we recently got The Deficit Myth by Kelton and there were Mosler essays around as well. And articles translated on https://www.retemmt.it/ and http://mmtitalia.info/
@post Why would you assume that?