A few weeks ago, I published a Working Paper to develop an alternative understanding and analysis of recent inflation pressures through the lens of Modern Monetary Theory. In it, I argue that conventional explanations of inflation remain ideologically compromised and constricted to an outdated social theory and framing. Consequently, public policy responses to recent price increases such as interest rate hikes and deficit reduction are antiquated, blunt-force tools that cause immense societal harm and simply don’t work. TL;DR the paper shows why Larry Summers and the gang are all wrong....Down With Tyranny
Pandemic Inflation: A Guide for Progressives
Andrés Bernal, Research Fellow at the Global Institute for Sustainable Prosperity, a Lecturer with City University of New York, and he's a Doctoral Student at The New School for Public Engagement
So nearly there.
ReplyDeleteIt's "Instead of interest rate hikes, create a Job Guarantee which will maintain price stability"
The Job Guarantee is primarily the system stabilisation function. The rhetoric of MMT needs to change to make it clear that the money we currently pay unelected wonks at the central bank and their banker mates will be going to ordinary people who don't have a job.
It's a wonk to worker redistribution.
Too many people see the Job Guarantee as a job creation programme. It isn't. It's an inflation stabilisation programme that actually creates full employment, which interest rate adjustments has singularly failed to do.
https://www.bloomberg.com/news/articles/2022-01-10/powell-says-fed-to-ensure-inflation-doesn-t-take-root-in-economy
ReplyDelete“ Powell also launched a new policy framework that committed the Fed to not preemptively raise rates as unemployment fell, in order to allow the benefits of a tight labor market to reach minority communities that have missed out in the past. U.S. unemployment fell to 3.9% in December, but the jobless rate for Black Americans rose to 7.1%.”
So he’s going to raise rates anyway lol!
“Hey! We’re not going to raise rates so black folks can get back jobs!” …. black unemployment rate rises…. “Hey! we have to raise rates anyway because Biden/Summers told me to!”
If Trump was still in there and these psychos even discussed raising rates in middle of pandemic he would cut all their balls off..,,
And you leftoids voted for these psychos…
I agree on the Trump thing. He would never allow it.
ReplyDelete