An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
Thursday, June 20, 2024
Watch this Movie — Bethesda 1971
Daily Kos
Watch this Movie
Bethesda 1971
Wednesday, June 19, 2024
Everything you want to know about MMT — Lars P. Syll
One of the positive contributions of MMT, especially from a European point of view, is that it makes it transparently clear why the euro-experiment has been such a monumental disaster. The neoliberal dream of having over-national currencies just doesn’t fit well with reality. When an economy is in a crisis, it must be possible for the state to manage and spend its own money to stabilize the economy.
Lars P. Syll | Professor, Malmo University
Thursday, June 13, 2024
Print Money in Structured Manner to Plug Deficit Instead of Raising Taxes, Economist Tony Mwiti Advises Kenyan President William Ruto — Muyela Roberto
Tuko (Kenya)
Print Money in Structured Manner to Plug Deficit Instead of Raising Taxes, Economist Tony Mwiti Advises Kenyan President William Ruto
Muyela Roberto
Trump floats concept of eliminating the income tax and replacing it with tariffs
Even libertarian douchebag and alleged STEM degree Massie on board…. Would need a big GOP sweep to get it passed….
I guess the tax elimination is going to over ride the debt doomsday thesis of these libertarian morons in their pea brains…. Hard to understand how their brains work….
I’d take it… we could get rid of the tax but they would still be stupid…
Can’t have everything…
👍
Most intriguing policy idea from the GOP meeting at the Capitol Hill Club this morning:
— Thomas Massie (@RepThomasMassie) June 13, 2024
Trump briefly floated the concept of eliminating the income tax and replacing it with tariffs. 🧐 pic.twitter.com/hw0k8gwlGa
Wednesday, June 12, 2024
IMF: Dollar’s "stealth erosion" in global reserves by other currencies—Serkan Arslanalp, Barry Eichengreen, Chima Simpson-Bell
Taking a longer view, over the last two decades, the fact that the value of the US dollar has been broadly unchanged, while the US dollar’s share of global reserves has declined, indicates that central banks have indeed been shifting gradually away from the dollar.BNE
IMF: Dollar’s "stealth erosion" in global reserves by other currencies
Friday, June 7, 2024
MMT — the key insights — Lars P. Syll
As has become abundantly clear during the last couple of years, it is obvious that most mainstream economists seem to think that Modern Monetary Theory is something new that some wild heterodox economic cranks have come up with. That is actually very telling about the total lack of knowledge of their own discipline’s history these modern mainstream guys like Summers, Rogoff and Krugman have.New? Cranks? Reading one of the founders of neoclassical economics, Knut Wicksell, and what he wrote in 1898 on ‘pure credit systems’ in Interest and Prices (Geldzins und Güterpreise) soon makes the delusion go away….
Lars P. Syll | Professor, Malmo University
Monday, June 3, 2024
Senior mainstream economist now admits central banks are not as independent as many believe — Bill Mitchell
The UK Guardian published quite an odd article the other day (May 30, 2024) by Mr GFC Spreadsheet Fudge Man Kenneth Rogoff – Why policymakers are more likely to risk high inflation during periods of economic uncertainty – which essentially claims that economic policy has been conducted for several years by institutions that do not meet the essential requirements that are specified by the mainstream New Keynesian macroeconomic approach, upon which the institutions have claimed justification. If that makes sense. He now claims that the eulogised principle of ‘central bank independence’, which is a mainstay of the New Keynesian justification that macroeconomic counter stabilisation policy should be left to monetary authorities and that fiscal policy should play a supporting but passive role, no longer exists as policy makers have had to come to terms with multiple crises. Of course from an Modern Monetary Theory (MMT) perspective such independence never existed and was just a ploy to allow the governments to depoliticise economic policy making and thus distance themselves, politically, from the fall out of unpopular policy interventions. If it wasn’t the IMF to blame, then it was the ‘independent’ central bank for austerity and interest rate hikes and all the rest of it. Now we have a senior Harvard professor admitting it was a ruse and bemoaning the fact....
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW,
The deficit myth
Lars P. Syll | Professor, Malmo University
Saturday, June 1, 2024
Odd posts from Warren Mosler claiming "crowding out."
Investment boom, crowding out consumption.
— Warren B. Mosler (@wbmosler) May 31, 2024
If business spending rises and personal consumption falls, so what? All that is, is a shift in the cohort doing the net spending. The economy may look a little different (factories getting built rather than expenditure on consumer goods, leisure, etc), but why is that a concern and how does he conclude, necessarily, that this is the reason for an economic slowdown?
It's wrong and it misses the main point which is the fact that the slowdown in the economy is coming from a decline in net government transfers (i.e. the "deficit") because "reverse stabilizers" are kicking in. (Tax deposits are rising faster than Treasury withdrawals.)
He ought to know this.