There is a need to distinguish special cases from the general case. While the general case MTT view may be agreed upon, reactions to differences in special cases (US, GB, Australia) may create the appearance of disagreement about the general case where there is no fundamental disagreement since the apparent disagreement is accounted for by national conditions that supervene.
This is an interesting post not only in terms of clarifying the MMT view but also in regard to interest rates and inflation. Interest rate policy may produce different consequences in special cases owing to institutional differences, e.g., the impact of interest rate setting through the housing channel is somewhat different in the US, GB, and Australia for this reason.
New Wayland
MMT Basics: Interest Rates
New Wayland
MMT Basics: Interest Rates
NeilW
Yup,
ReplyDeleteAnd size of the debt to GDP is important as this will determine the size of the stimulus from the interest income channel.
Some of the mainstream seem to know this tug of war that goes on between savers and borrowers. But concentrate on the borrowers and not enough on savers.
As discussed 58 mins in on this video which is an excellent discussion by the way.
https://m.youtube.com/watch?v=LCUPBpSiISU&pp=ygUNV2FycmVuIG1vc2xlcg%3D%3D
MMT is a " base case " that gets the foundational structures right that gives you a starting point that allows you build up an analysis from there when things change.
The rest can't even get the " base case " right due to monetary silencing over 100's of years. However, the upper class know fine well what the " base case " is and why the Euro was set up the way it was based on the French African colonial currency. The gold standard the upper class creme da is creme money design.
The " base case " is the university of Kansas currency the Bukaroo that's the " base case " what you do with it after that is entirely up to you. The upper class know this and understand it fully. Have known it for centuries.
Why the university of Kansas currency the Bukaroo the " base case " is so important.
ReplyDelete16 mins in ...
https://m.youtube.com/watch?v=LCUPBpSiISU&pp=ygUNV2FycmVuIG1vc2xlcg%3D%3D
Fadhel Kaboub takes the university of Kansas currency the Bukaroo the " base case " to a whole different level.
ReplyDeleteOverlays countries in the global South with the " base case " and teaches what he would do differently compared with what the upper class has done with the " base case " in these countries.
https://m.youtube.com/watch?v=EFM04Rzpewo&pp=ygUbZmFkaGVsIGthYm91YiBnbG9iYWwgc291dGgg
A human story and again very powerful. For me that's the way to present it.
Saying that all Trump needs to do is lower rates and run balanced trade and that fixes things. Means a couple of things
ReplyDelete1. That you are very happy to play along with the Monetary silencing carried out from above. Become an actual part of it.
2. MAGA has caught you in their laffer curve headlights. Which is akin to battered wife's syndrome.
A True MMT populist President would bring the whole charade down from above and expose the Monetary silencing that has been carried out by the upper class.
My own personal view is that by Saying that all Trump needs to do is lower rates and run balanced trade and that fixes things makes you no better than the Monetarists.
ReplyDeleteYou are just wearing a different type of monetary silencing T- shirt.
My own personal view is that those fruitcakes with fewer brain cells than a bag of spanners. Who want to join the EU or EFTA or NATO are fully paid up members of the Monetary silencing club.
ReplyDeleteTrade exposes these wife beaters for what they are.
https://twitter.com/atalaveraecon/status/1673251093046861826?s=61&t=2WPBW-5PNOSZxkEWhNtQfw
ReplyDeletesez Spain is going to report a <2% CPI for June YoY…
Trump’s Judy Shelton:
ReplyDelete“ Article below @WSJ helps explain why Fed’s approach to reducing inflation by raising interest rates to soften labor market is not appropriate. Employers worked hard to coax people to come back to work; they don’t want to cut them. Better to add business capital investment to existing human capital to increase productivity and expand output. Why should Fed make that more expensive by raising the cost of capital?”
https://twitter.com/judyshel/status/1670708039320584195?s=61&t=2WPBW-5PNOSZxkEWhNtQfw
Trump has recently said interest rates in US are way too high.. populist/progressive…
Hell cut rates if he can get back in..,
Then will be pilloried by MMT people…
Have to see what the US CPI is for June YoY…. May be like Spain.,,
ReplyDeleteThen what?
If the Biden people still think they have a “inflation “ political problem they will probably continue to tell their Fed to be continued “hawkish” to appear concerned about their figure of speech “inflation”…
If the population starts to be less concern about their figure of speech “inflation” then maybe Biden Fed will be lass figure of speech “hawkish”….
Whole thing is an art degree moron fest with their figures of speech and the whole 9 yards…
The mistake you are making is you think Biden actually runs the country.
ReplyDeleteTrump deserves to be attacked but it won't be because of zero rates. It's because he is bat shit crazy and thinks the democrats are radical far left, marxist, commies.
Takes credit for things he never did in office and thinks he was the best president ever. Everything he did was the best ever when the record shows he did very little. You just have to listen to the guy talk FFS. Step out of the way of the laffer curve headlights.
He is all the traits of a psychopath and his handlers are the Heritage foundation.
https://www.heritage.org/priorities
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His speeches tick the Heritage foundation priorities.
As you can see clearly below Masters at Monetary silencing and protecting the upper class by convincing blue collar workers they ARE capital. Tried and tested propaganda over hundreds of years. The buffer between you and the upper class.
https://www.heritage.org/regulations-spending-and-inflation
His latest speech a couple of days ago in North Carolina was a Heritage foundation bingo card.
ReplyDeleteWOW did those low paid workers clap. Monetary silencing par excellence.
“Monetary silencing” = conspiracy theory
ReplyDeleteSome colour from Australia. The point about fixed rate mortgages in USA vs variable rates in Australia is important as here in Australia we are much more vulnerable to rate increases as household debt is 120% of GDP. Every week you will see media about mortgage stress and the "mortgage cliff" that is going to kick in later this calendar year as lots of people that took on fixed rate at sub 2% are going to be facing rates of 5-6%. In Australia fixed rates only last 2-3yrs.
ReplyDeleteThe strange thing is ever since the rate increases last year, real estate prices have dipped but is now rebounding. This is somewhat strange since Australia is running a small surplus budget deficits. The only thing holding it all together seems to be the large trade surplus. If that were to turn negative....
“Monetary silencing” = conspiracy theory
ReplyDeleteYou're all guilty of partaking in hopium.
Monetary silencing = conspiracy theory
ReplyDeleteIs the equivalent of saying that actual American history = conspiracy theory.
Here shoe horn your art degree thesis into this Matt.
https://moneyontheleft.org/2019/03/15/confronting-monetary-imperialism-in-francophone-africa-with-ndongo-samba-sylla/
Good luck with that.
lol … I don’t have to shoehorn anything the Africa dude does it himself right here:
ReplyDelete“ Generally, I often like to quote Aristotle in his book, Nichomachean Ethics (in French it’s Ethique à Nicomaque), where he says the word that designates law in Greek [nomos], shares the same etymology, the same root, with the word referring to money/currency [nomisma]. So that means that you could not find a more political topic than money.”
Checkmate..,, again!
It’s like you are saying the Tories are operating a “Labor siliencing” conspiracy…
ReplyDeleteThe whole Dem vs GOP thing in US is that the GOP is conducting “Democrat silencing!”….
It’s simply the Art degree methodology…
There are simply competing theses and …. YOUR THESIS IS LOSING….
I don’t know what to tell you.. maybe Try harder?