{"id":49207,"date":"2019-10-28T15:03:04","date_gmt":"2019-10-28T20:03:04","guid":{"rendered":"https:\/\/olduvai.ca\/?p=49207"},"modified":"2019-10-28T15:03:09","modified_gmt":"2019-10-28T20:03:09","slug":"the-allure-and-limits-of-monetized-fiscal-deficits","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=49207","title":{"rendered":"The Allure and Limits of Monetized Fiscal Deficits"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/webapi.project-syndicate.org\/library\/c55880e9b3f73c19ee0347c3fe0b8e4b.jpg\" alt=\"roubini133_mikroman6GettyImages_decliningarrowmanpushback\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.project-syndicate.org\/commentary\/limits-of-mmt-supply-shock-by-nouriel-roubini-2019-10\">The Allure and Limits of Monetized Fiscal Deficits<\/a><\/h3>\n\n\n\n<p>With the global economy experiencing a synchronized slowdown, any number of tail risks could bring on an outright recession. When that happens, policymakers will almost certainly pursue some form of central-bank-financed stimulus, regardless of whether the situation calls for it.<\/p>\n\n\n\n<p>NEW YORK \u2013 A cloud of gloom hovered over the International Monetary Fund\u2019s annual meeting this month. With the global economy experiencing a synchronized slowdown, any number of tail risks could bring on an outright recession. Among other things, investors and economic policymakers&nbsp;<a href=\"https:\/\/www.project-syndicate.org\/commentary\/playing-chicken-with-global-economy-trump-china-iran-argentina-by-nouriel-roubini-2019-09\">must worry about<\/a>&nbsp;a renewed escalation in the Sino-American trade and technology war. A military conflict between the United States and Iran would be felt globally. The same could be true of \u201chard\u201d Brexit by the United Kingdom or a collision between the IMF and Argentina\u2019s incoming Peronist government.<\/p>\n\n\n\n<p>Still, some of these risks could become less likely over time. The US and China have reached a\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.reuters.com\/article\/us-usa-trade-china\/us-chinese-teams-working-on-phase-1-trade-deal-text-mnuchin-idUSKBN1WV2SJ\" target=\"_blank\">tentative agreement<\/a>\u00a0on a \u201cphase one\u201d partial trade deal, and the US has suspended tariffs that were due to come into effect on October 15. If the negotiations continue, damaging tariffs on Chinese consumer goods scheduled for December 15 could also be postponed or suspended. The US has also so far refrained from responding directly to Iran\u2019s alleged downing of a US drone and\u00a0<a href=\"https:\/\/www.project-syndicate.org\/commentary\/trump-iran-saudi-arabia-by-joschka-fischer-2019-10\">attack<\/a>\u00a0on Saudi oil facilities in recent months. US President Donald Trump doubtless is aware that a spike in oil prices stemming from a military conflict would seriously damage his re-election prospects next November.<\/p>\n\n\n\n<p>The United Kingdom and the European Union have reached a tentative agreement for a \u201csoft\u201d Brexit, and the UK Parliament has taken steps at least to prevent a no-deal departure from the EU. But the saga will continue, most likely with another extension of the Brexit deadline and a general election at some point. <\/p>\n\n\n\n<p>&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Allure and Limits of Monetized Fiscal Deficits With the global economy experiencing a synchronized slowdown, any number of tail risks could bring on an outright recession. When that happens, policymakers will almost certainly pursue some form of central-bank-financed stimulus, regardless of whether the situation calls for it. NEW YORK \u2013 A cloud of gloom [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[434,3926,1917,8402,1264,690],"class_list":["post-49207","post","type-post","status-publish","format-standard","hentry","category-economics","tag-international-monetary-fund","tag-monetization","tag-nouriel-roubini","tag-project-syndicate","tag-recession","tag-risk"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=49207"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49207\/revisions"}],"predecessor-version":[{"id":49208,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49207\/revisions\/49208"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}