Kenneth Rogoff, the creator of the fictional 90% budget deficit cliff, is back spreading new myths. He has now ventured into white-collar criminology, without the benefit of any study of criminology. The results are yet another embarrassment for Rogoff. The title of his article is “Paper money is unfit for a world of high crime and low inflation.”
I’ll leave his claim about removing the “lower bound” on central bank monetary policy to others. I note only that he ignores the readily available (and superior) alternative of fiscal policy.
