“Practical people who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back.”
In the last of the Labour leadership debates, Yvette Cooper repeated her attack on Jeremy Corbyn’s economic strategy. As a New Keynesian, she believes that since the economy is finally growing, the time for government investment or a fiscal stimulus has passed. She should tell that to the 2.3m unemployed and the millions more who are underemployed.
In the re-posted article below, Richard Murphy explains why her belief that Peoples’ Quantitative Easing would be inflationary, is simply not true.
The question of inflation is coming up time and again in the Labour leadership election. Yvette Cooper is certain that People’s Quantitative Easing will lead to a mass outbreak of hyperinflation in the UK. It’s time to address the issue.
First, some general background. PQE is simply a way of injecting money into the economy. Such…
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