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BrainBurner · 3089 days ago · link · · parent · post: Larry Summers: Advanced economies are so sick we need a new way to think about them
So he is stating that economic policy should not aim to maintain economic performance at a certain ideal point, and that past attempts to do so have in fact hindered our economic performance? So what is the alternative then? To simply follow the boom and bust cycle with minimal regulatory action?
Summers argued against a September rate hike. He actually has expressed interest in the Fed targeting nominal GDP, rather than inflation so they could be free to reduce effective rates even more. Summers seems to be saying that the action we take needs to be much greater.
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BrainBurner · 3089 days ago · link ·
Boy, I misread that. I have no idea what I'm talking about here.