Friday, August 17, 2012

Richard Koo on Richard Werner

An interesting exchange from economist Richard Koo on Richard Werner's findings took place in Melbourne Australia last week as reported on Economist at Large blog . It was 'interesting' in that the said Richard Koo was dismissive of Werner without even attempting to address the questioner's reasonable points which were put to him twice. If you look up Koo in Werner's books Princes of The Yen and New Paradigm in Macroeconomics you will see that the two  economists hold different views about the behaviour of Japanese economy since the early 1990's. But one wonders why someone of such eminence as Koo has to be quite so defensive. Doesn't the economic case stand or fall on its own?
The problem for non-economists is that there is little deep debate anywhere in the media so that we can judge the issues. In depth Q & A sessions are needed. Werner is the proponent of the case that the critical thing to economic recovery is that the supply of money is directed carefully and purposefully (see video). Koo seems to say that money is not effective in itself, what is needed is fiscal (government) stimulus. Here is a recent report from Koo on the Business Insider website.  
posted by Charles Bazlinton

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