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The Fiscal Cliff, Monetary Theory and the Problem with Modern Economics

I was on Capital Account earlier today with Lauren Lyster discussing Monetary Realism, the fiscal cliff and the biggest problem in economics today.  You can watch the full interview here.   The audio wasn’t great, but I’ll bullet point the discussion for you:

  • The fiscal cliff turned out to be far less significant than many presumed.  The total economic impact will not be nothing, but at the end of the day this could have been much worse.
  • The total 2013 deficit isn’t likely to decline by a significant margin as a result of this policy.
  • Economics is dominated by two schools.  The fresh water and the salt water schools.  If you’re not in this club you might as well not even voice your opinion.
  • I think the institution of economics needs to be totally disrupted.  Preferably by non-economists and/or economists who have real-world experience.
  • We need to get back to a Da Vinci Methodology.  We need to understand the world of money, finance, the monetary system and its design as it exists BEFORE we can design policy agendas.
  • Most of mainstream econ does the opposite.  It conforms an understanding of the system to an ideology.
See the full interview here.


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