Kevin Warsh, Very Serious Person, by Tim Duy
Tim claims that some speech given by Warsh is advocating for reduced deficits. I read the whole thing. The text I read simply said that combining fiscal and monetary policy is dangerous, bad policy results from the fiscal side remain there, and visa versa. The text was a very sound judgement.
What Tim did was to assume we all knew that Warsh did not like deficits at the current moment. May or may not be true, but separating fiscal and monetary is extremely important.
A lot of economists are saying 'more fiscal policy'. What they mean is that their favorite programs should get higher priority than interest payments. That won't happen until we are ready to default.
No comments:
Post a Comment