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Mainstream economists belatedly admitting post-keynesians were right...

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Robert Samuelson and a whole gaggle of like-minded researchers (all neoclassical/monetarist economists—Samuelson a particularly well-known one) essentially admit money supply (I.e., what the Fed is supposed to control) is endogenously determined.



But what if these assumptions are only partially true or, at times, not true at all?

Then the Fed’s influence on the economy is overstated. So concludes a new study by economists Alan M. Taylor of the University of California at Davis and Òscar Jordà of the Federal Reserve Bank of San Francisco. They examined interest rates from 1955 to 2018 for four major countries: the United States, Japan, Germany and Britain. They found that “interest rate setting is driven by factors outside policymakers’ control.”

Now, will anyone admit the postkeynesians have been pointing this out for YEARS and YEARS and YEARS?


No.  But, you know, small victories are still victories...

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