In this interesting video Federal Reserve Chairman Bernanke basically says that idle balances don’t chase goods and services and that a fortiori we don’t have to be overly afraid that quantitative easing will spill over into inflation. And – which actually is the most interesting part of the speech – he also confirms the Modern Monetary Theory view that the financing of these operations is made possible by simply crediting a bank account and thereby – by a single keystroke – actually creating money.
One of the most important reasons why we’re still stuck in depression-like economic quagmires is that people in general – including most mainstream economists – simply don’t understand the workings of modern monetary systems. The result is totally and utterly wrong-headed austerity policies, emanating out of a groundless fear of creating inflation via central banks printing money, in a situation where we rather should fear deflation and inadequate effective demand.Lars P. Syll's Blog
Ben Bernanke and MMT
Lars P. Syll | Professor, Malmo University
Now if we can just get Ben to stop talking about the public debt "problem."
5 comments:
"Now if we can just get Ben to stop talking about the public debt "problem."
But Tom that is how he gets Congress off his back when they start to corner him on the fact that his monetary policy is out of Schlitz...
Same technique that Jamie Dimon used recently too (they probably call each other the night before...)
This always works on the morons in Congress.... they fold like a tent...
rsp,
What a load of crap (again).
1. EVERYONE knows that fiat funny is created by keystrokes. Everyone.
2. The fact that the Fed or the government is able (for now) to get away with creating fiat funny money out of thin air by keystrokes does not solve, or even address, the problems of scarcity or economic calculation which are invariable problems of human existence.
3. The creation of fiat funny money via keystrokes necessarily impairs economic calculation and thus impairs the ability of everyone to determine and make arrangements for addressing the problem of scarce resources.
So Bob what's your alternative? The fact of the matter is that's how the modern economy has been working since 1971. How long are you going to be in denial ?
Tell me something don't you accept this funny money as your paychecks? Or do you shop only with gold coins ?
1. "The fact of the matter is that's how the modern economy has been working since 1971."
2. I know. It is how the plundering Keynesian state is able to pay for it perpetual wars . You get used to it.
http://mikenormaneconomics.blogspot.com/2012/10/washingtonsblog-real-reason-america-is.html
2. I know. It is how the plundering Keynesian state is able to pay for it perpetual wars . You get used to it.
Like Thutmose III and Timurlane and Genghis and Richard III.
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