Monday, July 6, 2015

Randy Wray — MMT, The Euro and The Greatest Prediction of the Last 20 Years


The record.

New Economic Perspectives (July 8, 2012)
MMT, The Euro and The Greatest Prediction of the Last 20 Years
L. Randall Wray | Professor of Economics, University of Missouri at Kansas City

1 comment:

Matt Franko said...

" with the EMU’s introduction of a single currency under conditions in which Germany is practicing a policy based on a belief that in absolute terms their wage costs are too high relative to Asia and the United States — not internally, relative to Europe — there will be very strong deflationary pressures on wages in the other European countries,"

It doesn't even matter where the labor is performed... iow the German firms could be arranging for the labor to be taking place in China and the same thing would happen.... if the German firms lower their prices on the goods either as a result of reducing their costs due to productivity gains in Germany or via getting Chinese EUR zombies to labor for 1 EUR per day... its "deflationary" iow they are able to lower the prices of their wares to be more price competitive in the marketplace...

If they lower their prices in the US market in USD terms, then the EUR/USD follows those prices down...