Hi Alex,

The paragraph of SW-L’s that you cite does not support Neil’s claim that “Mainstream economists believe they can reach full employment and maintain price stability simply by adjusting a single interest rate” (if that’s what you’re saying). SW-L just says that interest rate adjustments do have an effect (which I agree with). And he makes that point by way of calling into doubt the MMT claim that interest rate adjustments are not very effective.

As to EXACTLY how effective interest rate adjustments are, I agree with the latter MMT claim.