In systems theory, a force at one point in that system affects all other characteristics of that system. IMO, where national banks governors make a mistake is in misattributing the cause of inflation for example. I suspect this comes from their idea that interest rates are the be-all and end-all for inflation control.
A very thorough and well written article and I appreciate the critique. I think having independent propositions is use for comparing viewpoints between different academics, but you raise a good point that you need a broader understanding.
In systems theory, a force at one point in that system affects all other characteristics of that system. IMO, where national banks governors make a mistake is in misattributing the cause of inflation for example. I suspect this comes from their idea that interest rates are the be-all and end-all for inflation control.
Agreed!
Darren Your most interesting post. Apart from the Job Guarantee as a price anchor, what other automatic stabiliser acts as a price anchor?
A very thorough and well written article and I appreciate the critique. I think having independent propositions is use for comparing viewpoints between different academics, but you raise a good point that you need a broader understanding.
A fair comment. And somewhat addressed in this recent note - https://substack.com/@darrenquinn/note/c-126324349?utm_source=notes-share-action&r=clsb6 - by which I mean what are the hidden assumptions does each academic have or any of us really.