Thursday, July 14, 2016

Geoff Coventry — Ending Fiscal Stimulus: A Case For Sensible Fiscal Policy


The case for economic policy based on MMT.

It's The People's Money
Ending Fiscal Stimulus: A Case For Sensible Fiscal Policy
Geoff Coventry



11 comments:

Andrew Anderson said...

If it's the people's money then how come we can't have accounts at the central bank too?

It appears to me that fiat is THE BANKS' MONEY except for unsafe, inconvenient, perhaps soon to be abolished physical fiat, aka "cash."

Giving the people money without deprivileging the banks will embolden them to start another boom-bust cycle and further increase wealth inequality. It's called front-running, I believe.

So who is MMT to be used for? The people or the banks?

MRW said...

If it's the people's money then how come we can't have accounts at the central bank too?

You’re a fucking broken record.

It’s the People’s law as well, but people can’t use the Supreme Court as their local court to settle civil disputes.

Money in the US is created the same way that laws are. The government makes them up for the benefit of the people.

Matt Franko said...

Join a credit union... maybe then you will still be able to 'get into heaven!" and avoid "going to hell!"...

Andrew Anderson said...

It’s the People’s law as well, but people can’t use the Supreme Court as their local court to settle civil disputes. MRW

What's a few hundred million accounts to modern computers and communications? Physical fiat would be a little awkward (since who trusts ATMs for cash deposits?) but a few extra people at local Post Offices could handle that.

Besides, aren't you in favor of giving people jobs? I assure you many would LOVE providing the population with an alternative to the banks. Imagine the huge SMILES they'll receive for doing so?

Money in the US is created the same way that laws are. The government makes them up for the benefit of the people. MRW

Fiat, like laws, should be created to serve the general welfare, not private interests like usurers and the most so-called credit worthy, the rich.

Thanks for the positive feedback and I mean that in an engineering sense!

Matt Franko said...

Andrew when you say here:

"Giving the people money ... will embolden them to start another boom-bust cycle"

is the same mistake this guy makes here:

"If it leaves too much in there can be periods of unwelcome levels of inflation."

This is 100% monetarist analysis and FALSE nothing at all works this way .... its about PRICE NOT QUANTITY...

Andrew Anderson said...

Join a credit union... Franko

That's equivalent to buying bank stock.

As for my soul:

He has told you, O man, what is good;
And what does the Lord require of you
But to do justice,
to love kindness,
And to walk humbly with your God?
Micah 6:8

Or are justice, kindness and walking humbly with God mere Hebrew concerns?

Matt Franko said...

What does justice have to do with whether or not we use fiscal agents or have the civil service directly provide banking services?

I know a bunch of people who would probably complain about the civil servants too...

Matt Franko said...

What do you think that there is going to be a "gate" and then Peter is "going to be there" and say "how did you prefer to do your banking?" before he will "let you go in"...

Please...

Andrew Anderson said...

This is 100% monetarist analysis Franko

Increasing reserves (part of MB) need not increase the money supply (M1, M2 etc.) but increasing the account balances of the citizenry certainly does and it would almost certainly stimulate the economy.

and FALSE nothing at all works this way .... Franko

Well, now you've learned otherwise, I hope.

its about PRICE NOT QUANTITY... Franko

Neither necessarily since interest rates are low and the banks are flush with reserves. The missing ingredient is sufficient income to the general population, i.e. consumers. And that's because, ultimately, of our unjust fiat and credit creation system.

Matt Franko said...

You're a monetarist ...

Andrew Anderson said...

The mistake of the monetarists is to think the money supply can be controlled with monetary policy alone, is my understanding. Since I know better then I can't be a monetarist. Indeed, I believe ALL fiat creation should be for the monetary sovereign ALONE so I believe in FISCAL policy as the means to control the money supply - to the extent possible given that even 100% private* banks with 100% voluntary depositors can create SOME new liabilities for fiat.

What I am is someone for equal protection under the law wrt fiat and for 100% private* banks with 100% voluntary depositors.

Basically, I come down on the side of government and the people, not on the side of government-subsidized depository cartels for the sake of usurers and the rich.

You? As if I didn't know?

*And this will require abolishing much private debt in a manner that does not disadvantage non-debtors since current private debt is largely unjust.