The title of this post was left in a recent comment by Morgan Warstler. What he means is that NGDPLT takes nominal spending off the table, all that’s left is for the government to try to influence the split between P and Y. And that means demand policies don’t work, all fiscal policy must be supply-side, aimed at more growth and hence less inflation.
If conservatives understood this then market monetarism would go from being a fringe movement eyed suspiciously by those on the right, to a position where we’d be headline speakers at CPAC.
While we’re at it, Morgan’s wage subsidy scheme makes the minimum wage and welfare obsolete.
PS. I have a bubble post (with Shiller bleg) over at Econlog.