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 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. Fiscal Cliffhangers
Best Free Podcasts This week we hold a chat with Professor Mathew Forstater of the University of Missouri-Kansas City. We talk about the role of primitive accumulation in the rise of capitalism, how government taxes were a tool of primitive accumulation in the colonies, and how it continues to work it's magic in today's economic system. Marx's thoughts on fiat currency get a hearing, as does the role of America’s deficit and their government debt.
Social Democracy for the 21st Century: A Post Keynesian Perspective
Endogenous money and fully reserved banking In-depth analysis on Credit Writedowns Pro , now with big discounts for regular readers. Contact us for info. 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.
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
MMT in a nutshell
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MMT on Twitter
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.
The Center of the Universe
Great Leap Forward
MMT: A Doubly Retrospective Analysis
Cyprus – Greece or Iceland? Obvious It is a public holiday in Australia today like everywhere.
Modern Money Mechanics | MMT simplified.
Money and Public Purpose at Daily Kos Reposted from Social Security Defenders by Letsgetitdone Editor's Note: Durbin's one of Obama's men in the Senate. Obama's been terribly persistent about trying to get cuts to SS. Progressive opposition, along with rightist intransigence on "grand bargains" has stymied him so far, but has done so with arguments that mostly grant the idea that we have a long-term deficit/debt problem. This is just not true. -- Letsgetitdone Have you heard about Dick Durbin's proposal for a new Social Security reform commission? It sounds remarkably like the failed Simpson-Bowles Catfood Commission, complete with special rules that allow its recommendations, if approved by the commission, to take the express route to the floor of Congress for a vote with no amendments and limited debate.
Mike Norman Economics
John Thomas Financial Successfully Incorporates Modern Monetary Theory (MMT) Into Forecasts
This post brings together several disparately placed comments on the same topic for convenient reference, and for those that may not have seen the comments. Initially, JKH commented on a post by Perry Mehrling at The Money View concerning the recent article at The Economist on heterodoxy that mentions MMT. I posted both here . Hugh Heden asked for clarification here . JKH responded in the following comment . JKH on MMT and Risk
The Traders Crucible
Main Page - MMTWiki
3spoken: Savings - Explaining the Humpty Dumpty word The main reason for doing the work on the Blue Book was to work out the relationship between the numbers and what they are called in 'National Accounts' terms. This can then be related back to what we talk about in MMT and hopefully reduce the amount of talking past each other that goes on. The first saving relationship comes from how income is defined: Gross National Disposable Income - Household Final Consumption - Government Final Consumption = Gross Saving. So Gross Saving is most definitely Income that is not spent on Final Consumption. The equivalent 'saving' figure for the external sector is called the Current External Balance.