Next week, I am attending a meeting which I hope will finalise discussions I have been having with some key prospective partners in putting together a major MMT-Green New Deal initiative in Australia which will have global ramifications. It will bring together MMT with climate action and indigenous rights interests. We propose to begin a ‘roadshow’ in November to start our campaign. Our discussions to date have been very productive and we will issue a ‘White Paper’ in the coming months to articulate what we conceive as a jobs-first, equity-first MMT-Green New Deal might look like. This work will also form the basis of talks I am giving in the coming month throughout Europe and the UK. I have already started sketching elements of my thinking on this topic under the category – Green New Deal – which also contains a long history (now) of relevant commentary. Today, I am focusing on another element that I consider to be a core part of a progressive MMT-Green New Deal campaign – dealing with unproductive financial markets. I am not for one minute thinking any of the analysis today (or any of the GND stuff) is likely to be implemented without a massive and lengthy struggle. I think I understand vested interests. So a valid retort to the ideas is not to accuse me of being politically naive. My role, as an academic, is to work through things and lay out blueprints to guide directions of activity based on that thinking. It is not to assess the likelihood of success of the blueprints being implemented. I sort of see these blueprints as being benchmarks – to assess where we are at and how far it is to go. And as debating vehicles which define what opponents have to address. But, moreover, I do see them as being guides for campaigning strategies, which can then be implemented by those who know more about those things than I ever will. This is a two-part series....Bill Mitchell – billy blog
An MMT-Green New Deal and the financial markets – Part 1
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia
See also
Project Syndicate
Capitalism in the Last Chance Saloon
Adair Turner
1 comment:
"The broad measure includes all institutions in the financial sector except banks, insurance companies and pension funds.
I used the FSB data to compile the following graphs for the Eurozone.
The first graph shows the growth of assets held by the OFIs from 2002 to 2017.
By 2017, total assets held by OFIs were $US37,423.1 billion having grown by 430 per cent since 2002. "
Large ECB QE requires banks to use their capital to leverage Reserve Assets not loans so the banks are going to under perform these other types of lenders who dont have to comply with banking regulations...
Duh....
"You can see that when real GDP growth was negative (2008 and 2009 and 2012) the OFI assets growth was strong."
No kidding the increase in reserves during that period caused the recession and economic under performance as the banks had to instead finance the Reserve Assets so again the only institutions who will be able to lend are these "B money" types of lenders...
MMT is 20 years behind the times...
They should get out of the new green deal and instead study banking system operations...
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