Compounding the spending and taxing

My previous post about government expenditure – and inflation – omitted I fear, the ‘multiplier’ effect wonderfully explained by Charles Adams here. Government created money circulates widely…. Because when we tax we compound the spending and taxing – even on a mathematical basis we have this: Or, on a broader scale – this: Government and… Read more

Inflationary reply

I was rather surprised to read this tweet from Professor Jonathan Portes: This is Richard Murphy’s quote that he used: I really think Professor Portes’ comment is pretty low, and low brow. It is, I’d propose, considerably lower than when I suggest that putting up interest rates is monetarist nonsense. Does it stop inflation? No…. Read more