Monday, November 5, 2012

More on "Three Assumptions for Addressing Fiscal Policy Intelligently"


Three Assumptions for Addressing Fiscal Policy Intelligently

Whenever an economy grows significantly, it's because it's citizens were successful at sensing value, exploring value paths, and inventing paradigm-specific coordinate systems.

When discussing fiat currency operations, it's absolutely clear that we're all searching for the right jingles that will accelerate public transition from pursuit of static value to pursuit of dynamic value (i.e., from hoarding static assets to hoarding coordination capabilities). Why is this even a bottleneck?  Humans are, after all, an obviously social species practicing diverse cultures.  We're actually very close to a solution, since we already practice and exhibit the transition mentioned above, in many of our personal & group activities.  Yet we simultaneously deny that ongoing transition in much - but not all - of our official rhetoric about our own, "social" cultures. Go figure!

What jingle will accelerate our electorate's grasp of the nature of coin and currency?  We can't predict what message will finally resonate. It will have to be selected - from a LOT of options - by the audiences themselves.

Once we find a way to quickly get across what many have already spent too long sumarizing - we'll have made a real difference for future generations. All existing attempts already summarize of the observations of hundreds of authors - but we need something even better. Kudos to all who can diversify simpler versions, so we can explore them all, and discover which ones scale.

It's obviously not easy. As an analogy, Imhotep et al developed the math & geometry to build the pyramids ~4500 years ago - using initially horrendously complicated math notation (it sounded worse than Greek, even to the Greeks). It took roughly another 4000 years before the decimal notation made advanced math accessible to nearly all humans. Seems obvious in retrospect, but what was obvious to some after extensive labor, still wasn't obvious to most. Eventually, however, enough people tripped over appropriate methods - ie., decimal notation - that it's use began to accelerate, for the most mundane of reasons.  It was useful to most people.

Methods drive results, after perceived returns drive demand for new methods.

We always need new methods allowing more people to rapidly sense the return on novel forms of coordination. Call this Adaptive Rate in marketing.  Subsequently, we always need simpler methods for discriminating the initially obscure paths to newly visualized returns.  Call this Adaptive Rate in product application (i.e., group practice).




Sunday, November 4, 2012

John T. Harvey — Obama's Bad Economic Policies vs. Romney's Disastrous Ones

Since I started this blog in April 2011, I have criticized President Obama on a number of occasions. In summary, his administration has come up far short of where they should be in terms of job creation. There is absolutely no reason whatsoever that unemployment should not now be 5 or 6% rather than the 8% at which we have hovered for the last year. He should have done much, much better.

This should not be taken, however, as an endorsement of the Romney/Ryan ticket. Far from it, the very errors made by Obama are embraced by the Republican ticket at the path to recovery. Those who understand the manner in which the economy operates are rightly terrified at the prospect of their election.

Forbes | Pragmatic Economics
Obama's Bad Economic Policies vs. Romney's Disastrous Ones
John T. Harvey | Professor of Economics, Texas Christian University

David Rothschild — Romney camp hoping for a systematic polling bias in Ohio

In the last two days, six new polls of Ohio voters have been released, five of which favor President Barack Obama, by leads of 6 points, 4 points, 4 points, 3 points and 2 points. The last reports a tie, from right-leaning Rasmussen, which gave former Gov. Mitt Romney a 2-point advantage last week. Obama now has a 3.1 percentage point lead in Pollster's average for Ohio and a 2.9 percentage point lead in the RealClearPolitics average for Ohio.
A 3 percentage point lead is hardly an insurmountable margin for Obama. But it has been so consistent over the past several weeks that Romney ought to be hoping that the polls favor Obama on a systematic basis by overestimating the turnout of respondents with demographics that favor him. This is certainly possible, but it would mean that many different polling institutions are making similar mistakes. The outcome of Ohio, then, will be as much a referendum on the art of polling as it will be on the art of the presidency.
Yahoo! News | The Signal
Romney camp hoping for a systematic polling bias in Ohio
David Rothschild | Predictwise

Sunday Philosophers' Corner — John Dewey schools Ayn Rand

Dewey's short and superb book Individualism Old and New was published in 1930, but could easily have been written last year. In it, he argues that personal liberty is enhanced - not diminished - by social cooperation, and the real threat to the individual comes not from a dynamic concept of the public good, but from the social isolation and economic injustice endemic to mindless corporate capitalism. Dewey thinks that promoting individual freedom and opportunity requires not just private ambition, but also public collaboration and an open, experimental attitude. Unfortunately, we watched a different experiment play out over the past 30 years - the Randian experiment of deregulation, deunionization and regressive tax policy - which culminated in economic crisis, soaring inequality, decreased social mobility,political gridlock and cultural decline. It's time to learn from another experimental period in American history, one that brought us 30 years of relative progress, growth and prosperity - time, in other words, to stop listening to John Galt and to start listening again to John Dewey.
Now, despite their radically different worldviews, Dewey and Rand have some striking similarities. Both are pragmatists who value action over abstraction and believe that the ultimate worth of an idea is how it works in practice. Both are champions of modern science and the human capacity for reason, although Rand believes that such tools uncover absolute and immutable truths, while Dewey considers all intellectual inquiry problem-oriented and therefore provisional. Both are also critical of organized religion, although Dewey acknowledges the role that faith plays in bringing people together and giving them a shared sense of purpose, while Rand dismisses faith as an odious device for controlling the weak-minded. Finally, both envision a free and just society in which individuals can flourish and prosper - in other words, both are individualists, of a sort. Their respective understanding of individualism and how to foster it, however, couldn't differ more. 
Truthout | Op-Ed
The Antidote to Ayn Rand
Jeffrey Mikkelson | Independent Scholar

I've liked reading John Dewey ever since I took a survey course in American philosophy in graduate school with a prof who was a Dewey expert. America really does have some excellent philosophers in it relatively short history as a contributor to culture, and Dewey is right up there in the top echelon. Unfortunately, Dewey is not a thinker that most people are likely to engage today.

BTW, I should add that John Dewey understood Aristotle's Nichomachean Ethics and relies on it. Rand's "Aristotelianism" is a parody of Aristotle, whereas Dewey brings the ancient Greeks up to date with scientific understanding and experimental methodology, which had eluded them as products of their time.

Short summary of Dewey's ethics.

World famous OpenSource economist reducing unemployment in Australia Northwest Territories.


OpenSource CofFEE now available in Darwin. A fitting evolution!


Three Assumptions for Addressing Fiscal Policy Intelligently


This in in response to a request from Frank Li, to reduce description of fiat currency operations to three basic assumptions. Frank rejected my suggested approach, so I'm posting them here.

(1) The business of a [good] government is to support short, medium AND long term success of small, middle AND large size business communities.
a. Business is for short term profits, PLUS positioning for medium-term profits, PLUS staying in business long enough to guarantee long-term profits.
b. Adaptive profit strategies guaranteeing short, medium & long term survival leads to constantly growing jobs for more people, thereby generating the options required for continued growth.

(2) In some ways, a country must be run like a business or a family, or it will go bankrupt, but we must be aware of the subtle differences in operational strategy that apply to the different levels of organization. In every example of hierarchical organization, the "parent" level of policy management runs a "real-goods" budget, while ISSUING, in unlimited amounts, a fiat accounting system purely for internal bookkeeping. The "child" USERS of that accounting or currency system can run entirely on a "currency" budget precisely because their parent ISSUERS currency allows USERS to use that currency as an accurate proxy for local real-goods budgets. National-level organizations that ISSUE currency can go bankrupt ONLY by running out of real, natural resources, including it's people. An issuer of fiat currency can always issue as much or little of it's currency to account for public organization, and so it cannot go bankrupt in the sense of running out of accounting units. For currency USERS, bankruptcy in currency units reduces to being identical to bankruptcy in real-goods units.

(3) It’s both true and not exactly true to argue that the USA is not like a business or family. The responsibility of USA policy staff - our elected government - is to spend into existence as much currency as the nation needs to operate, but neither too much nor too little. The purpose of fiscal policy is to pursue the public goals of a growing population and it's growing business communities, while avoiding both extremes of either inflation or deflation. An excessive currency supply can contribute to inflation, and an insufficient currency supply can contribute to deflation. In addition, wrong headed employment and tax policies can allow personal income and savings distributions to be unproductively skewed to the point where the unpredictably distributed capabilities of emerging citizens cannot be optimally sampled, developed or utilized.


In the end, the social purpose of inventing a currency system is to ensure that any and all productive transactions that citizens agree should occur, can always proceed without delay ... a concept called liquidity. The purpose of a national currency is to provide liquidity for all social inventions, so that their development can be judged, without unnecesary delay, solely upon the diverse social feedback which eventually allows selection of a national survival path.

Mosler Book Free This Weekend Only


"Soft Currency Economics II", published at Amazon, on Kindle.

Great press for MMT. Kudos to Russ Huntley for arranging the Kindle edition.

Saturday, November 3, 2012

There Biggest "REAL" Problem for the USA is the Lost Capacity That Results From Having Human Capital Sit Idle


How to ‘fund’ hurricane Sandy

So? A 1% Solution Has Defeated the Entire US Electorate!


NATO: ‘Victory Has Defeated You’

Return to basics indeed! Regarding our "own" victory over ourselves, I'd welcome the return of the people who understood colonial fiat currencies ... and how to use them.


Russell S. Sobel — The Free Market Can Do a Better Job

A FEMA that established free trade zones -- in which all normal regulations, licensing and taxes were suspended, and in which buyers and sellers felt secure and protected — would better provide the goods and services victims need.
The New York Times | Opinion
The Free Market Can Do a Better Job
Russell S. Sobel | Visiting Scholar in Entrepreneurship in the School of Business Administration at The Citadel

More Libertarian free market fundamentalism from an armchair philosopher.

Free market fundamentalism reminds of Aristotle's argument that the heavenly bodies must travel in circular orbits, you know, because circles are perfectly symmetrical.

AMI weighs in on MMT – negatively

Thus MMT fails to address the source of economic instability and the driver of the social and environmental degradation we see all around us. It proposes putting an ambulance at the bottom of the cliff whenever there’s a crash, instead of preventing them happening.
This error comes from the mis-definition of money as debt. The mis-definition of money as debt is incompatible with the Chartal (legal) nature of money that MMT espouses, and history shows us that it is also incompatible with MMT’s stated goals of full employment and price stability. Therefore, MMT has to treat money as money: a necessary medium of exchange – without associated debt – if it wants our money system to reflect reality.
Treating money as money is a pre-requisite for any realistic and sustainable solution. Only then can we enjoy the benefits of technology without endless toil and resource use. When economics is founded on reality, not theory, we’ll all be better off.
American Monetary Institute
AMI’s Evaluation of “Modern Monetary Theory” (MMT)
AMI Research, with Steven Walsh; and assistance by Stephen Zarlenga
(h/t Roger Erickson via email)

As Brad DeLong often says, "the department of huh?"

Consider Us Collectively Ignorant.


Bill Black: Why Are There No Famous Financial Whistleblowers in This Crisis?

Over at MMT-discuss, Jerrit writes:
"Just a wild guess, but the rank and file at most dead-end jobs feel
(maybe correctly) that they're lucky to have a job and don't want to
rock the boat.

It's not outlandish to think that that's actually part of the looting
class' strategy. Keep the working class just desperate enough for
employment that they'll be less likely to speak out against further
looting."


Exactly. That's why education and mis-education are essential strategies for both sides, the 99% ... and the (innocently/purposely) Upper Looting Class. It's a risky game to loot your own electorate. You have to keep 'em confused enough to allow the looting, yet letting situational awareness dip too low risks losing the entire system.

It's stupid of course, since there's a better way. The only way looting gets started is when net situational awareness lags enough that people get distracted into such badly divisive strategies. It's never advised to even step onto a slippery slope, let alone grease it further. Return on coordination offers so much more, and so much less risk that an electorate has to be ignorant to ever stray from the path.

Consider us collectively ignorant.

Sure, we're always dumb when it comes to adapting to constantly and unpredictably changing situations, but are we getting dumber, or smarter in terms of our Adaptive Rate?  We should be finding slopes that head up, not down.  And stop letting sociopaths slinging oil in front of everyone else.  Please?


Federal Gov't delivering millions of gallons of gasoline to NY. WTF...das Frei MarKet didn't do it????

The Department of Defense is trucking 12 million gallons of gasoline (that's a lot of gas) to New York. Until now there has been no gas. In other words, the Federal Gov't is supplying gas.

Where was the "invisible hand" of the free market? Where were the suppliers anticipating conditions as a result of listening to the perfect information supplied by the perfect, all-knowing market?

I just had to post this hysterical comment that Rob Parenteau put on my Facebook page. It's hilarious.

Wait, Mike, you mean das Frei MarKet, with its illustrious and ever innovating Invisible Hand, didn't deliver the goods already? WTF? Must be price controls or sumpin inhibiting all those entrepreneurs from buying and selling and bartering and trucking all that fuel from transnational oligopolistic oil companies into place in near perfect anticipation or at least nearly complete knowledge of future demand schedules. And now, back to Atlas Slouched.

I'm sure Libertards and conservatives will be all over this with lame excuses like it was gov't regulation or some other crap that blocked the ability of businesses and entrepreneurs to supply gas.

Simon Kuper — Falling out of love with America


America becoming isolated? If you are living outside the US, what do you see happening?

The Financial Times | FT Magazine
Falling out of love with America
Simon Kuper
(h/t Yves Smith at Naked Capitalism)

Lars Syll — Wicksell’s critique of harmony economics

With the advent of neoclassical economics at the end of the 19th century a large amount of energy was invested in trying to formalize the stringent conditions of obtaining equilibrium and showing in what way the prices and quantities of free competition constituted some kind of social optimum.
That the equilibrium reached in free competition is an optimum for each individual – give prevailing prices and income distribution – was not, however, seen by some economists as making a very strong case for a free market economy per se. It was not possible to prove that free trade and competition gave a maximum of social utility. The gains made in exchange are not a manifestation of a maximum social utility.
Lars P. Syll's Blog
Wicksell’s critique of harmony economics
Lars P. Syll | Professor, Malmo University

There are several problems with the assumption that "free markets" achieve distribution of scarce goods in terms of maximum individual utility consistent with resource use. The first is that individuals are competent to choose for themselves in terms of maximum utility and also that the aggregate of individual utility is all there is to social utility, that is, that the system itself adds nothing of significance. 

Neither is true. Why? Human limitation, cultural factors and institutional arrangements supervene over individual choose and either shape it or even in many cases determine it.


Basically, methodological individualism overlooks the complex web of relationships in social systems, especially modern developed societies, i.e., nation states embedded in a complex web of relationships with other nation states. This results in the interplay of social, political, and economic factors that generate frameworks within which human intelligence, behavior, and interaction takes place. These frameworks determine what transpires within them by the boundary conditions they erect.

In addition, biological systems are complex adaptive systems subject to all the uncertainty that complexity involves due to emergence, and human systems also add the complicating factor of reflexivity. Humans have also been discovered to be non-rational beings due to the way that human brains function as integrated cognitive-volitional-affective processors of information in which the cognitive and affective are often at odds with each other, tugging in opposite directions on the volitional function. Even the cognitive function is not completely "rational" (predictable) owing to sectoral operations.

Therefore, there is no reason to expect that the operation of an invisible hand will be operative in the life and social science in any way similar to the function of "laws" in physical systems, where invariance can be stated in mathematical equations as functions relating independent and dependent variables.

As a matter of fact, such equations have not been written successfully in econometrics, and there is no reason to suspect that this is just a limitation that will be overcome with more knowledge. Existing knowledge of complexity indicates otherwise. There are many possible outcomes, some of which humans would regard as having social utility and others social disutility, since natural forces are brutally efficient.

Proponents of economic liberalism seem willing to accept the brutal efficiency of nature in the belief that they and their offspring will be among the survivors in social Darwinism. Proponents of social utility, on the other hand, believe that through the application of intelligence, humanity can increase its adaptability rate and rate of return on coordination faster than the rate of complexification.

One reason that proponents of social utility over social Darwinism believe this is because markets do not distinguish between needs and wants in allocation resources by price. But, as Abraham Maslow has observed, humans have a hierarchy of needs but a constellation of wants. That is to say, needs are prioritized based on necessity for life and living well, whereas wants are not. Markets make no such distinction. 

Humanity faces a growing challenge of increasing global climate change, polluted air, polluted water that his short in supply, poisoned food, and maldistribution of food, just to name some of the bottom rungs on Maslow's hierarchy of needs. 

The question is how best to address these conditions. Inquiring minds would like to know, is it by bringing human intelligence to bear on social utility by seeking to increase the adaptive rate, or it is by freeing the market to decide supposedly optimal allocation of scarce resources? Or are there other options?

Finally, in considering Pareto optimality, Amartya Sen (as I recall) bids us remember that freeing the slaves after the US Civil War was not Pareto optimal from the slave-owners point of view. Neither is social utility from the point of view of the global ownership class and national elites. Perhaps that has something to do with their preference for "market solutions."

Friday, November 2, 2012

Matias Vernengo — On Austrian Business Cycle


Matias weighs in on ABCT.

Naked Keynesianism
On Austrian Business Cycle
Matias Vernengo | Associate Professor, University of Utah

Bill Mitchell — Eurozone policy makers destroying prosperity

In the last week, several major data releases have been published by Eurostat, culminating in yesterday’s release of the September unemployment which shows that the jobless rate has risen to its highest in the currency union’s history. There are now 18.49 million people in the Eurozone without work and that is the tip of the iceberg when it comes to assess the wasted production and lives that the fiscal austerity is creating. Just in the last month, a further 146,000 became unemployed. More than 25 per cent of available workers are unemployed in Greece and Spain. We have moved from describing this tragedy as a recession. This is now a full blown Depression of the scale of the 1930s travesty and, once again, its depth is a direct result of policy failure. All the indicators are coming together and providing an unambiguous verdict – that the Eurozone policy makers destroying prosperity and have relinquished any sense of capacity to govern, where that term means the capacity to advance public purpose and improve welfare.
Bill Mitchell – billy blog
Eurozone policy makers destroying prosperity
Bill Mitchell

Bill Mitchell — External economy considerations – Part 1

I am now using Friday’s blog space to provide draft versions of the Modern Monetary Theory textbook that I am writing with my colleague and friend Randy Wray. We expect to complete the text by the end of this year. Comments are always welcome. Remember this is a textbook aimed at undergraduate students and so the writing will be different from my usual blog free-for-all. Note also that the text I post is just the work I am doing by way of the first draft so the material posted will not represent the complete text. Further it will change once the two of us have edited it.


Chapter 15 International Trade, Capital Flows and the Exchange Rate
[Note: This is the first rough layout and will evolve over the next few weeks]
Introduction
Bill Mitchell – billy blog
External economy considerations – Part 1
Bill Mitchell

John Carney — How to Fix the Gas Shortage: Let ’em Gouge

Gas is a good that is extremely susceptible to the temptation to hoard. It doesn’t go bad under any reasonable period of time, which means that there’s no penalty for purchasing excess stock in a time of shortage. The only way to discourage this is by explicit rationing or by allowing the price to increase, making people pay a higher price during the shortage.
I haven’t been able to find one economist in favor of the anti-gouging laws. My explicit call for an anti-gouging law supporter on Twitter was met with silence. People from across the political spectrum—Matt Yglesias at Slate to Holman Jenkins at the WSJ—have condemned the laws.
There’s good reason for the widespread condemnation of anti-gouging laws: they are—almost—universally harmful. There’s no public good or special interest benefited by the laws. And especially when it comes to necessities like gasoline, the harm they do is sharply felt by a large part of the population.
So why do we have these stupid laws at all?
CNBC NetNet
How to Fix the Gas Shortage: Let ’em Gouge
John Carney | Senior Editor

Why ration by price (willingness to pay more in monetary units) rather than ration by time (willingness to pay in time units by waiting in line)? The argument is, of course, "efficiency." But what makes "efficiency" the criterion rather than, say, fairness.

The "political" argument doesn't hold water either. Politicians are guided by the next election and they know that allowing price-gouging will likely harm their chances of being reelected. While this may be seen as political cravenness, it can also be viewed as being representative of the majority regarding voter wishes, which is what democracy is supposed to be be about rather than "efficiency." It's called effectiveness, and in a democracy, voters get to set the standard for effectiveness.

John says that he hasn't found one economist who favors anti-gouging laws. So? Since when did economists become the arbiters of democracy and not voter wishes as elected representatives see them?

Lars Syll — MMT and the Wicksell connection

Reading L. Randall Wray‘s new book Modern Money Theory - in which the author challenges conventional (neoclassical) wisdom on modern monetary theory by replacing the usual mystifications of the nature of money with a theory that shows what’s really going on in modern monetary economies – yours truly came to think of how most mainstream economists seem to think the idea behind Modern Monetary Theory is new and originates from economic cranks.
New? Cranks? How about reading one of the great founders of neoclassical economics – Knut Wicksell.
Lars P. Syll's Blog
MMT and the Wicksell connection
Lars P. Syll | Professor, Malmo University

Justin Fox  — What Does Nate Silver's '80.9% Chance of Winning' Mean, Anyway?


Justin Fox explains how the probability scoring works. It's not what many think.

Harvard Business Review | HBR Blog Network
What Does Nate Silver's '80.9% Chance of Winning' Mean, Anyway?
Justin Fox

Dirk Ehnts — The Dutch real estate bubble goes POP! and Dutch banks face future problems

Apparently, this story is still under the radar. The Dutch domestic lending to invest in property has produced a real estate bubble just like in Ireland or Spain. I wrote about this in April and apparently the information coming in these days seems to vindicate my writings.
econoblog101
The Dutch real estate bubble goes POP! and Dutch banks face future problems
Dirk Ehnts | Berlin School for Economics and Law

Book — -New Money for a New World by Bernard Lietaer and Stephen Belgin



New Money for a New World
Bernard Lietaer and Stephen Belgin

Currency Solutions for a Wiser World — Bernard Lietaer
Bernard Lietaer

Marshal Auerback — How do we ‘pay’ for Hurricane Sandy?


MMT to the rescue.

Pinetree Capital | Macrobits
How do we ‘pay’ for Hurricane Sandy?

How to ‘fund’ hurricane Sandy (Part II)
Marshal Auerback

Thursday, November 1, 2012

Tyler Durden — Americans Aged 18-29 Have A More Favorable Response To Socialism Than To Capitalism


Interesting charts. Younger people seem to realize that cooperation and coordination are more significant for well-being than competition. Older people seem to have more a knee-jerk reaction to "socialism" and "capitalism."

Zero Hedge
Americans Aged 18-29 Have A More Favorable Response To Socialism Than To Capitalism
Tyler Durden

How useful to have a copy of your own genome sequence?


New Gene Sequencer to Break $1,000 Cost Barrier With NVIDIA Tesla GPU Acceleration

Well, just about as useful as having the engineering printouts for your car.

Practical utility for most people ... about nil.

Eat your fresh veggies, diet & exercise appropriately. Yo granmama told you nearly all you need to know.  Your physiology already runs almost entirely on automatic stabilizers, PRECISELY so you can focus on using it to help invent cultural organization on an even greater scale.

Much better to focus on inventing the template for the next evolution of US culture. Now THOSE are options worth exploring!

Can someone instead make it dirt cheap to use a GPU (graphical processing unit) to visualize our existing currency & fiscal policy operations - i.e., our "policyome"?  If every 10 year old boy & girl could know what Marriner Eccles & Beardsley Ruml realized, maybe the quality of our policy discussions could climb out of the gutter.  That would help improve public situational awareness, something that matters even far more than expensive personal health repair.

We need an Android fiscal policy app, based on basic Marriner Eccles, Beardsley Ruml and Warren Mosler insights.


Salt as ancient money

Nikolov said the settlement near Provadia was home to some 350 people who likely produced salt from the nearby rock-salt deposits.
"They boiled brine from salt springs in kilns, baked it into bricks, which were then exchanged for other commodities with neighboring tribes," Nikolov said, citing as possible evidence the gold and copper jewellery and artifacts that have been unearthed in the region.
The most valuable is a collection of 3,000 gold pieces unearthed 40 years ago near the Black Sea city of Varna. It is believed to be the oldest gold treasure in the world.
"For millenniums, salt was one of the most valued commodities, salt was the money," Nikolov said adding that this explained the massive stone walls meant to keep the salt safe.
The two-storey houses, as well as the copper needles and pottery found in graves at the site, suggest a community of wealthy people whose likely work was the once-lucrative production of salt.
Al Jazeera
Europe's 'oldest town' found in Bulgaria

Greg Hannsgen — Fiscal Policy Debates and Macro Models Abound in the News

Many of the themes in fiscal policy, economic growth, and distribution that we have been working on here have been in the news lately. Scholars from many fields are weighing in. One common theme is dynamics and their importance:
Multiplier Effect
Fiscal Policy Debates and Macro Models Abound in the News
Greg Hannsgen

Lord Keynes — My Posts on the Origin of Money

I have assembled a set of two lists of links and a bibliography below, as follows:
(1) my posts on the origin of money and the debate between David Graeber and Robert P. Murphy;
(2) some external links on the debate between David Graeber and Robert P. Murphy, and
(3) a bibliography on the origin of money.
First, however, I will give a quick summary of Graeber’s view on the origin of money in his recent book (Graeber 2011).
Social Democracy for the 21st Century
My Posts on the Origin of Money
Lord Keynes

Peter Cooper — Not Even Rational Fools

I have given some thought (about two minutes) to what is wrong with the economic theory that gave us the Great Moderation, with its eternal promise of no Great Flood ever again, only the colors of rainbows. The temptation for theorists, in seeking a way forward, is to throw the baby out with the floodwater, and then the ark at the baby. But perhaps that would be a mistake. Perhaps the ark could be salvaged if a simple genetic modification were made to the baby. It has been customary to suppose that this baby is a rational human being, and moreover that this rational human being is representative of other human beings. Now, in all honesty, who here among us can claim to be represented by this?
heteconomist.com
Not Even Rational Fools
Peter Cooper
The modification to the traditional rationality assumption that enables us to explain everything without requiring any other hand wringing or change in philosophy is simply this:
Many of us are morons.
That’s it. One small but powerful change in mindset and we can explain it all.
I guess Peter has been reading MNE. :)