Thursday, March 8, 2012

Edward Harrison — Chart of the Day: Monetary Transmission Mechanisms


Edward Harrison explains the difference between monetary base and money supply in MMT terms.

Read it at Credit Writedowns
Chart of the Day: Monetary Transmission Mechanisms
by Edward Harrison

8 comments:

SchittReport said...

http://www.youtube.com/watch?v=yb2QRtk4QjI

Dr. Michael Hudson on MMT.

geerussell said...

That was worth watching. Hudson is a good standard bearer for MMT.

Tom Hickey said...

SR, tried to promote that vid to a post, but it doesn't come up on YouTube through Blogger. The link works, but YouTube doesn't recognize it through the Blogger link.

Leverage said...

How irrational must one be to keep listening to people like Schiff which has been wrong so long! Madness.

Leverage said...

On topic,

Koo so close to getting it but still not getting it is frustrating (as he has a relatively wider audience and could reach more people, though all his alerts didn't change policy making in Japan or now in Europe or USA).

I wonder if he running with the idea of stupid money multipliers and 'base money' and 'liquidity traps' is to not disgust the economic establishment.

Also he should aknowledge that governments are monopolists of their own currency and can never run of it, and can bid their own debt securities (which in the first place NEVER should have been issued as they are inflationary and unnecessary) so debt is not a problem (deficits can be if there is inflation though, but with Japan in the deflationary path since 20 years ago who would care about that).

PeterP said...

Leverage,

There were cases where Schiff was right and our guys were wrong:
http://www.youtube.com/watch?v=2I0QN-FYkpw start at 2:50

I think to keep a good perspective we need to remember this and give credit where credit is due, otherwise we are being dogmatic. Schiff seems to understand credit money/debt very well here and draws right conclusions. He is wrong on government money, inflation mechanisms and more, but here his performance was impressive and Mike Norman was simply (inexplicably?) wrong - his MMT chops should have given him the tools to be right in that situation, and he wasn't.

John Zelnicker said...

Tom -- You found this for me didn't you? :-) After you explained this to me yesterday I saw the chart and it all makes the concepts much clearer. Thanks for your help. And thanks very much for all your work in bringing so much together on this site. It is truly the number one MMT site.

wilwon32 said...

It was good to hear Michael Hudson explain that the neoliberal propagandists at the U of Chicago and their offspring/acolytes have managed to control thought/ discussion in the USA by controlling the media. To see a relevant link related to Keynes bashing see: http://community.middlebury.edu/~colander/articles/Political%20Influence%20on%20the%20Textbook%20Keynesian%20Revolution.pdf
Keynes disciple, Laurie Tarshis's, book was royally subverted by the likes of W R Buckley!