In this episode, Ritik Goyal joins Adam, Ryan, and Douglas to discuss:
- Ritik's journey from working at Bridgewater to co-founding "The Monetary Frontier" on Substack
- How Ritik was drawn to MMT as a framework that accurately describes economic flows and policy impacts, especially in the context of austerity politics.
- Ritik's nuanced view on MMT, particularly questioning the idea of a zero neutral interest rate and its effect on the availability of safe assets like treasuries.
- The historical relationship between interest rates, inflation, and the Federal Reserve's role, suggesting that the Fed's influence is more psychological than direct.
- The primary role of fiscal policy over monetary policy in economic outcomes, challenging conventional views on the Fed's effectiveness.
- Analysis of current market trends, the potential impact of Fed rate cuts, and the risks of a self-reinforcing economic slowdown.
- The effectiveness of asset price inflation as a stimulus for the broader economy, highlighting the importance of safe assets in economic stability.
- The importance of understanding economic mechanics and the role of MMT in shaping economic discourse, emphasizing the need for a more nuanced understanding of fiscal and monetary interactions.
"The Fed Does Not Exist" by Ritik Goyal