Summary:
Stephanie Kelton traces the problem to misunderstandings resulting from a poor choice of terms in which to talk about government finance, modeling it conceptually on household and firms finance, even when the former is the monopoly issuer of its currency and all that implies financially and economically, whereas firms and households are users of the currency that must obtain the currency, e.g, to pay taxes, since the government is the sole supplier. Consequently, it's a mess that those in a position to profit from can exploit. She suggests adopting a terminology that fits operational realities based on existing institutional arrangements instead of continuing to use terms that promote a fantasy.The LensThese Are the Times that Try Men's Soul's. And mine too.Stephanie Kelton | Professor of
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Stephanie Kelton traces the problem to misunderstandings resulting from a poor choice of terms in which to talk about government finance, modeling it conceptually on household and firms finance, even when the former is the monopoly issuer of its currency and all that implies financially and economically, whereas firms and households are users of the currency that must obtain the currency, e.g, to pay taxes, since the government is the sole supplier. Consequently, it's a mess that those in a position to profit from can exploit. She suggests adopting a terminology that fits operational realities based on existing institutional arrangements instead of continuing to use terms that promote a fantasy.Stephanie Kelton traces the problem to misunderstandings resulting from a poor choice of terms in which to talk about government finance, modeling it conceptually on household and firms finance, even when the former is the monopoly issuer of its currency and all that implies financially and economically, whereas firms and households are users of the currency that must obtain the currency, e.g, to pay taxes, since the government is the sole supplier. Consequently, it's a mess that those in a position to profit from can exploit. She suggests adopting a terminology that fits operational realities based on existing institutional arrangements instead of continuing to use terms that promote a fantasy.The LensThese Are the Times that Try Men's Soul's. And mine too.Stephanie Kelton | Professor of
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Lars Pålsson Syll writes Monte Carlo simulation explained (student stuff)
Mike Norman writes Corporate buybacks
Mike Norman writes Month end settlements
Angry Bear writes Biden finalizes rule opening up Obamacare to DACA recipients
The Lens
These Are the Times that Try Men's Soul's. And mine too.
Stephanie Kelton | Professor of Public Policy and Economics at Stony Brook University, formerly Democrats' chief economist on the staff of the U.S. Senate Budget Committee, and an economic adviser to the 2016 presidential campaign of Senator Bernie Sanders