tag:blogger.com,1999:blog-2761684730989137546.post6729737885989347679..comments2024-03-28T07:50:06.102-04:00Comments on Mike Norman Economics: Bill Mitchell — The tale of two nations – democracy dies in Portugal and lives in Canadamike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2761684730989137546.post-44679586974324484612015-10-27T17:50:18.831-04:002015-10-27T17:50:18.831-04:00
Interview: capitalism, neo-liberalism and democra...<br />Interview: capitalism, neo-liberalism and democracy<br />Wolfgang Streeck, Ben Jackson<br />http://www.renewal.org.uk/articles/interview-capitalism-neo-liberalism-and-democracy<br />Anonymoushttps://www.blogger.com/profile/09614411407350202877noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-37467736855731289712015-10-27T13:20:57.489-04:002015-10-27T13:20:57.489-04:00The "constant" should be investigated us...The "constant" should be investigated using the capitalization regulatory ratios in the bank regulations governing the banks that are actually exchanging liabilities denominated in the two different currency units... <br /><br />iow if they developed a "constant" C where C is in USD/EUR based on Basel II or something .... THEN they could sum up some transcations in USD dt and multiply by a constant C in USD/EUR and then show how the exchange rate between the USD and the EUR was effected by flow of USDs....<br /><br />Short of this type of analysis they are simply not doing science... I dont know what they are doing...Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-78654534146728864932015-10-27T13:02:46.499-04:002015-10-27T13:02:46.499-04:00but Neil just work out the units...
ok..... look...but Neil just work out the units... <br /><br />ok..... look at aggregate amounts of transactions over time... think of the calculus... ok... you get a sum of $$$/time.... so how does the other currency unit then come in to the units?<br /><br />What <i> causes </i> the change in the observed rate? how can a flow of transactions over time when summed then include another currency in the units?<br /><br />In physical sciences, this is when you see "physical constants" come in to play... so if they are correct, then they have to introduce a "constant" into the analysis....<br /><br />See here: <br /><br />https://en.wikipedia.org/wiki/Physical_constant<br /><br />"Whereas the physical quantity indicated by any physical constant does not depend on the unit system used to express the quantity, <b>the numerical values of dimensional physical constants do depend on choice of unit system</b>. Therefore, these numerical values (such as 299,792,458 for the constant speed of light c expressed in units of meters per second) are not values that a theory of physics can be expected to predict.<br /><b>Because their units cancel, ratios of like-dimensioned physical constants do not depend on unit systems in this way</b>, so they are pure dimensionless numbers whose values any other civilization, anywhere, and at any time in the universe would predict. "<br /><br />So they have just f-ing SKIPPED the development of the constant for their area... imo this is where some more clear minded desire "stock-flow consistency" .... iow the "stock-flow consistency" people at least smell a rat...<br /><br />Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-35719072333844528722015-10-27T11:43:37.040-04:002015-10-27T11:43:37.040-04:00"Forex traders have very limited influence on..."Forex traders have very limited influence on the exchange rates... the rate is dominated by what the exporters/importers will offer/bid in the different currency terms... "<br /><br />That's interesting because that is, of course, exactly the opposite of what most economists believe - that the volume of trades is what moves the price. <br /><br />However when it comes to settlement the only people that actually need the forex are those doing actual buying and selling. Everything else is a zero sum game - so of course it pulls towards what importer/exporters want *unless* there is a patsy central bank doing daft things in the background. <br /><br />NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-23164615497256948162015-10-27T07:44:51.745-04:002015-10-27T07:44:51.745-04:00"The article notes that currency “traders soo..."The article notes that currency “traders soon got over it” – ‘it’ being the election of a political party determined to increase the fiscal deficit through increased government spending.<br /><br />The ‘knee-jerk response’ was to initially sell off the currency but that “only created a buying opportunity for anyone with a less jaundiced view of government’s role in the economy”.<br /><br />I love that! The financial market traders are ultimately are not ideological just greedy."<br /><br /><br />Forex traders have very limited influence on the exchange rates... the rate is dominated by what the exporters/importers will offer/bid in the different currency terms... <br /><br />(I think Mike might have bought that sell-off last week...)<br /><br />USD/CAD is stable here in the low 1.30's as oil is stable in the mid $40's.... if it takes another leg down it will be on even lower oil prices or a different Canadian price reduction for another significant good/service in USD terms, not whether forex traders think the new govt will be "printing munnie!" or what the deficit is or isn't...Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.com