Saturday, October 1, 2011
Edward Harrison on Currency Revulsion
Edward Harrison of Credit Writedowns comes from the Austrian school, but he has recognized that MMT is the correct description of the existing monetary system and has integrated it into his thinking. He explains the distinction between nations that are sovereign in a non-convertible floating rate (fiat) currency, like the US, UK, and Japan, and those that are not, i.e., the EZ. This is a good read to pass on to others, too. It hits the main points of the MMT approach with respect to currencies, interest rates, the bond yields, and the like.