So-Called Fiscal Cliff Is Baloney; Our Economy Can Recover if Obama Focuses on What We Really Need: Jobs! | Alternet July 15, 2012 | Like this article? Join our email list: Stay up to date with the latest headlines via email.
Savings Glut" Means Much of Economics Is WRONG This exchange (here, here, and here) between my friend Jared Bernstein and Casey Mulligan is worth a brief comment. As I've told several people who followed it, Mulligan is absolutely presenting the mainstream position in the profession, but Jared is right. The question, if we ignore silly semantics, is whether the economy typically faces a problem of insufficient demand. In other words, if companies, families, or the government went out and spent $500 billion tomorrow would this boost growth or just cause inflation. (Yes, I used all three interchangeably because if the problem is a lack of demand it doesn't matter who spends the money, the short-term effect on the economy is the same.)
Mike Norman Economics: Dean Baker — "Savings Glut" Means Much of Economics Is WRONG Dean Baker presents an account of saving and demand leakage that is in agreement with MMT. CEPR — Beat the Press"Savings Glut" Means Much of Economics Is WRONG Dean Baker Stephanie comments:
The NYT had a brief discussion of Modern Monetary Theory (MMT) today in the context of a profile of Warren Mosler, one of its major proponents. The profile includes a dismissive comment from Mark Thoma, a professor at the University of Oregon and the creator of the blog, The Economist's View: "They deny the fact that the government use of real resources can drive the real interest rate up ... I think it’s just nuts." Reconciling Modern Monetary Theory with the Wisdom of Mark Thoma
Do exports LOWER a nation’s living standards? | Mecpoc By Andrea Terzi In the U.S. and (particularly) in euro countries, policies aimed at stimulating exports are (sadly) considered an effective response to lagging growth (U.S.) and recession (Euroland). Viewing a net export balance (i.e., an international trade surplus) as an economic virtue and a growth engine is a relic of Mercantilism that has had a powerful comeback, not coincidentally, with the abandonment of fiscal policy as a counter-cyclical tool.
Transcript: Stephanie Kelton Interview - Harry Shearer Listen to the podcast here. Interview recorded Thursday, October 25, 2012. Here it is! From deep inside your radio.
This year, January 1st will not be just another day to nurse a hangover, it also marks the deadline for the United States government to enact regulations to avert a prospective economic crisis. Join Central Standard as we welcome economists Stephanie Kelton and Mat Forstater, to discuss the impact of the pending decisions congress will make regarding the fiscal cliff, and how these decisions will affect the average American. Mathew Forstater is Full Professor of Economics, University of Missouri—Kansas City, and Founding Director, Center for Full Employment and Price Stability. He is also a Research Associate at the Levy Economics Institute of Bard College. Forstater received his B.A., summa cum laude, in African American Studies, from Temple University in 1987, and an M.A. (honors, 1993) and Ph.D. (1996) in Economics from the New School for Social Research. Fiscal Cliffhangers
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Social Democracy for the 21st Century: A Post Keynesian Perspective N.B. Warning: Some bad language in videos! OK, this is not related to economics, but a personal and maybe even “public service” post. If you have ever had a person with an Indian accent make an unsolicited call to your house and tell you that: (1) they are from “Microsoft Technical Support” or “Windows Technical Support” or the “technical department of Windows operating system” (!) or something like this, and that you have viruses or “errors” on your computer, or (2) that your licence or registration for Windows is expired or invalid and that you need to renew it through them,
Endogenous money and fully reserved banking In-depth analysis on Credit Writedowns Pro. You are here: Home » Financial Institutions » Endogenous money and fully reserved banking After the Great Depression broke out, American economist Irving Fischer championed a view of the financial system now called “endogenous money“, which sees each person in the economy as a creator of credit. Viewing the economy through this lens leads to a number of conclusions that are at odds with economic orthodoxy, particularly regarding the ability to generate a credit accelerator by adding reserves to the financial system. The endogenous money view also has some interesting things to say about the role of fractional reserve banking as a credit accelerator, which is where I want to focus here.
Out of the debate over at Steve Keen's blog a key point arose that I figured would be worth breaking out: Have you ever wondered why banks denominate their accounts in the liabilities of another bank? That can only be because they are in a fixed exchange arrangement with that other bank – which they are required to maintain. MMT primarily describes the policy benefits of a particular system – one where the private banks are locked in a fixed exchange rate system for their own liabilities with the liabilities of one or more central banks under a legally enforced arrangement, but where that central bank floats their own liabilities on the currency markets. It also describes the follies that ensue when the central banks fix the exchange rate of their liabilities with each other or with a supranational central bank. To pay your taxes you need to present the government’s own bank’s liabilities to settle that debt. 3spoken: The fixed exchange rate system at the heart of MMT
The Palley War
MMT Basics: You Cannot Consider the Deficit in Isolation
Economic Myth Busting – The Video Version I joined Erin Ade on Boom Bust on RT TV this afternoon to discuss economic myths and hyperinflation. We covered a lot of ground in 10 minutes including the money multiplier, paying back government debt, the government’s debt constraint, hyperinflation and the “money printing” myth. 5 Things To Ponder: Beer Goggles, Fires And Luck While the article was based around the historical statistical data, it got me to thinking about the average investor and where they are currently positioned in the markets today.
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winterspeak.com I wrote a recent post on whether or not a bank was a financial intermediary referring to an old Tobin paper. In response, the indomitable JKH retorted: Tobin’s essay revolves around the idea that banks are a type of financial intermediary... Curiously, there has been some resistance from heterodox economics types to the idea that banks are financial intermediaries. Why has there been such resistance to this idea? First, heterodox likes to focus on the notion that banks are “special”, as reflected in the idea that “loans create deposits”.
Modern Monetary Theory The problem cannot simply be a problem of current account imbalances—we’ve got them all across the US states. And the US, itself, runs a chronic current account deficit. But the US federal government is sovereign, it issues its own currency. It helps to offset current account deficits among states through fiscal transfers; and it can never run out of its own currency no matter how big its budget deficit.
Males over 20 working – shocking when compared to the 50s Posted by WARREN MOSLER on January 17th, 2014 and the next thing they are going to tell us is that black males age more quickly than white males… The Center of the Universe
Great Leap Forward
MMT: A Doubly Retrospective Analysis
Options for Europe – Part 64 The title is my current working title for a book I am finalising over the next few months on the Eurozone. If all goes well (and it should) it will be published in both Italian and English by very well-known publishers.
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