For the record:
If the JG actually functions as a buffer stock, its inflationary impact will be smallest when the economy is doing best and most likely to have rising inflation, and vice versa (program is largest when inflationary pressures are lowest).
Indeed, in my simulations that made the assumption the buffer stock mechanism was working, when the economy was booming and most prone to inflation, the JG was reducing inflation since it was at that moment that spending on the program was declining the fastest.Scott Fullwiler
5 comments:
Which is why we desperately need an MMT dynamic model.
So we can test these scenarios and see what happens to the dynamics between the various Income Guarantees/ Job Guarantees and Unemployment relief.
Even just the attitude of the guarantee makes a difference - is it a punishment or a way of helping people find meaning in their lives.
Remember that the liar loans were only a $300 to $450 billion dollar fiasco
That means Resolution Trust Corporation part II should have taken care of that with standard bi-partisan elastic currency theory which is now via Norman, Mosler and Hickey a subcorrallary to MMT.
Instead however we have derivative formula models in financial engineering where lawyers, quants of math and physics, finance majors, and so on all googoo gaga over the complexity -
I guarantee if you ellminate the derivatives then you ellminate the amplification of the foresclosures where old fashion banks ( as described by Krugman ) hold on to the debt rather than shipping it around the world in UPS parcels.
OCCUPY MUST BE READY FOR THIS SO AS TO USE SOCIAL MEDIA TO GATHER THESE PEOPLE TOGETHER EN MASSE FOR THE OCCUPY PART II PHASE
IF WE CONSOLIDATE THESE FOLKS' ANGST TOGETHER, THEN A SINGLE FIGURE SHOULD ARISE AND LEAD THE CHARGE AGAINST BERNANKE AND THE FORECLOSURES.
THIS IS A GREAT OPPORTUNITY FOR OCCUPY AND MMT.
THEY WILL TRY TO COVER IT UP WITH SMOKE MIRRORS AND PIXIE DUST SUCH AS "GREAT ECONOMY" "GREEN SHOOTS" AND ALL THAT BLARNEY USING BACK DOOR MMT
WHILE LEADING PEOPLE INTO THE STREETS TO FEND FOR THEMSELVES.
IF MMT IS THE THING IT THINKS IT IS, THEN IT WILL BE THERE READY TO TAKE CARE OF THESE PEOPLE AND TO LEAD THE REVOLUTION !
Neil above raises the possibility that JG can be a form of “punishment” for those involved.
We shouldn’t forget here that if a potential JG employee is allowed to stay on unemployment benefit, someone else is punished in that the latter has to pay extra taxes to support the JG person in idleness. So who is punishing who?
I.e. I’m tempted to re-phrase Neil’s question as: “how do we share the punishment?”
Ralph: We shouldn’t forget here that if a potential JG employee is allowed to stay on unemployment benefit, someone else is punished in that the latter has to pay extra taxes to support the JG person in idleness. So who is punishing who?
Taxes funds federal expenditures in the US now? Last time I looked the US was the monopoly provider of a non-convertible floating rate sovereign currency.
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