by Summary:
Americans are just fine with debt. When they fight about it, they're actually negotiating in code over something else: what programs are so important that it doesn't matter how you pay for them?A little more than a month ago, Howard Dean had breakfast at the Hotel Vermont in Burlington with Stephanie Kelton. Mr Dean has served as Vermont's governor, a candidate for President, and head of the Democratic National Committee. Ms Kelton, who teaches economics and public policy at Stony Brook University in New York, is the best-known advocate for modern monetary theory, a way of looking at how governments spend money. "I expected some semi-Marxist bullshit," says Mr Dean, "but she’s a real thinker."... Good article.FT AlphavilleAmerica has never worried about financing its prioritiesBrendan
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Mike Norman considers the following as important: Howard Dean, MMT, Stephanie Kelton, US Politics
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Americans are just fine with debt. When they fight about it, they're actually negotiating in code over something else: what programs are so important that it doesn't matter how you pay for them?A little more than a month ago, Howard Dean had breakfast at the Hotel Vermont in Burlington with Stephanie Kelton. Mr Dean has served as Vermont's governor, a candidate for President, and head of the Democratic National Committee. Ms Kelton, who teaches economics and public policy at Stony Brook University in New York, is the best-known advocate for modern monetary theory, a way of looking at how governments spend money. "I expected some semi-Marxist bullshit," says Mr Dean, "but she’s a real thinker."... Good article.FT AlphavilleAmerica has never worried about financing its prioritiesBrendan
Topics:
Mike Norman considers the following as important: Howard Dean, MMT, Stephanie Kelton, US Politics
This could be interesting, too:
Mike Norman writes Jared Bernstein, total idiot. You have to see this to believe it.
Steve Roth writes MMT and the Wealth of Nations, Revisited
Matias Vernengo writes On central bank independence, and Brazilian monetary policy
Michael Hudson writes International Trade and MMT with Keen, Hudson
Americans are just fine with debt. When they fight about it, they're actually negotiating in code over something else: what programs are so important that it doesn't matter how you pay for them?Good article.
A little more than a month ago, Howard Dean had breakfast at the Hotel Vermont in Burlington with Stephanie Kelton. Mr Dean has served as Vermont's governor, a candidate for President, and head of the Democratic National Committee. Ms Kelton, who teaches economics and public policy at Stony Brook University in New York, is the best-known advocate for modern monetary theory, a way of looking at how governments spend money. "I expected some semi-Marxist bullshit," says Mr Dean, "but she’s a real thinker."...
FT Alphaville
America has never worried about financing its priorities
Brendan Greeley
See also Warren's comment:
Warren Mosler
Excellent report and thanks for the mention!
Let me state that you need to omit the word 'only' as there are numerous other reasons for what is called "inflation" in addition to what you described:
"Modern monetary theorists argue that inflation happens only when the real economy — plants, machines, workers — can't absorb what the government is spending."
Also, for the record, I met with Don Rumsfeld seeking guidance on promoting the understandings. He directed me to Art Laffer's firm where I worked with Professor Mark McNary to write 'Soft Currency Economics'. My 2010 book 'The 7 Deadly Innocent Frauds of Economic Policy' is free online at www.moslereconomics.com
And for those interested, core understandings include:
1. The currency itself is a state monopoly, and monopolists are necessarily 'price setters'.
2. The 'money story' begins with a state desiring to provision itself.
3. Taxation by design functions to create sellers of goods and services (unemployment) seeking the state's currency in exchange to avoid tax penalties. The state can then provision itself with its otherwise worthless currency.
4. The state (or its agents) is the single supplier of that which it demands as payment of taxes.
5. Therefore the state, from inception, necessarily spends first, after which tax payments are made and state securities paid for.
6. The public debt is nothing more than the funds spend by the state that have yet to be used for tax payment, and remains outstanding as the 'net money supply' in the form of cash, balances in reserve accounts at the Fed, and balances in securities accounts at the Fed until used to pay taxes.