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30 sats \ 3 replies \ @guerratotal 3 Jun \ on: The Myth of Long and Variable Lags econ
Absolutely spot on. The problem is they’re obsessed with averages and aggregates, which completely misses the real mechanics. The Cantillon Effect kicks in instantly — the first receivers of new money benefit right away, while everyone else feels the pain later through distorted prices and malinvestment. It’s not really about “long and variable lags,” it’s about who touches the money first. The damage starts immediately, even if the stats take time to reflect it.
Yep, this is the point the mainstream economists and MMTers miss every time. Of course, they may be direct benefactors of this effect. I just get a little bit suspicious and cynical whenever I hear someone known to be close to the spigot, spouting off about lags and delays and there being no effect at all.
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Exactly. Funny how those closest to the spigot are always the ones downplaying the effects. It's not ignorance — it's incentives.
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That is my opinion of that matter, too. You just can't bite the hand that feeds you, now can you? Some of them are definitely getting feed well at the trough.
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