Not about MMT but rather about "money."Today, I am sharing a January 12, 2024 interview of Yi Gang, former Governor of the People’s Bank of China, by 金融时报 Jinrong Shibao (literally Financial Times), a newspaper by the central bank.Yi obtained his Ph.D. in Economics from the University of Illinois Urbana–Champaign and became an Associate Professor with tenure at Indiana University–Purdue University Indianapolis, before going back to Peking University, his alma mater. He later joined the People’s Bank of China and rose through its ranks until heading it between 2018 and 2023.Yi retired in July last year and his five-year tenure at the helm of China’s central bank is known for, according to Bloomberg, “a restrained policy approach focused on moderate stimulus and reducing financial risks in

Paul Samuelson, the author of what still might be the most-sold textbook of the post-war era had this to say on page 427 of his first edition, addressing a subject then very close to the thoughts of many of his readers:Can it be truthfully said that “internal borrowing shifts the war burden to future generations while taxing places it on the present generation”? A thousand times no! The present generation must still give up resources to produce the munitions hurled at the enemy. In the future, some of our grandchildren will be giving up goods and services to other grandchildren. That is the nub of the matter. The only way in which we can impose a direct burden on the future nation as a whole is by incurring an external debt or by passing along less capital equipment to our

This guy has been really wrong in hindsight … those that took his advice paid a high opportunity cost…THE BIGGEST BEAR ON WALL STREET HAS FINALLY CAPITULATED MIKE WILSON THE CHIEF STRATEGIST & CHAIR OF MORGAN STANLEY’S GLOBAL INVESTMENT COMMITTEE IS STEPPING DOWN AFTER YEARS OF BEING WRONG & INCOMPETENCEMIKE WILSON HAS BEEN PREDICTING A MAJOR STOCK MARKET CRASH FOR YEARS NOW pic.twitter.com/aLey57rNj5— GURGAVIN (@gurgavin) February 3, 2024

Episode 11 in our new Manga series – The Smith Family and their Adventures with Money – is now available. We are approaching the climax for Season 1. The final episode in the series will be published on February 16, 2024.Have a bit of fun with it and circulate it to those who you think will benefit …William Mitchell — Modern Monetary TheoryThe Smith Family manga continues – Episode 11 is now availableBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

As the title says, the post is about "moving to a sustainable system of food production within a degrowth paradigm." The basis of the discussion is whether this can take place within the context of "capitalism." Bill argues for the position that it cannot. I have set for reasons previously explaining my agreement with this view. A major reason can be summarized as "perverse incentives." Of course, it is more complicated than that but the rubric "perverse incentives" sums up Marx’s notion of internal contradictions inherent in the capitalism system.However, even granting a critique of capitalism, the fundamental question remains unanswered, namely, how does global production get from here to there. Without specifying a potentially fruitful route the project remains utopian. Bill proposes

Pepe Escobar reviews Prof. Glenn Diesen’s new book, The Ukraine War & The Eurasian World Order. Escobar recently reviewed Emmanuel Todd’s La Défaite de L’Occident (“The Defeat of the West”).The reviews are short and present views that suggest the world order is changing not only politically but also economically as a result of decolonization. This emerging trend portends to grow the pie for all albeit not without growing pains as the dominant parties attempt to maintain their hegemony.Strategic Culture Foundation (sanctioned by the US Treasury Department)Will the Hegemon Ever Accept a New Westphalian World Order?Pepe EscobarIf this site is blocked for you, try Global South here and here.

China’s state-led economic development model and robust industrial policy has transformed it into what an influential European think tank calls “the world’s sole manufacturing superpower”, making up 35% of global gross production – more than the 9 next largest manufacturers combined.…China has overseen world-historic economic growth through a government-led development model, in which state-owned enterprises control the natural monopolies and “commanding heights” of the economy, state-owned banks give favorable loans to strategic industries, and the state’s robust industrial policy helps the country move up the value chain toward higher value-added forms of production.Geopolitical EconomyChina is ‘world’s sole manufacturing superpower’, with 35% of global outputBen Norton See

It’s wishful thinking to think it’s being driven by wishful thinking…The EU’s idea of the reform of the fiscal framework is unworkable in practice. It will lead to recession and crises and higher public deficits and debts. Instead of building the reform on hard science (incl. accounting & empirical observation), it is driven by wishful thinking.— Dirk Ehnts (@DEhnts) January 30, 2024 It’s being driven by a type of academic practice that doesn’t exist in the “hard sciences “…

I often make the point in talks that the fictional world that mainstream economists promote leads to poor decisions in the real world by our policy makers. We saw that in the 1980s and 1990s with the large scale privatisations of public enterprises, touted as employment-enriching, productivity-boosting strategies to provide ‘more money for government to spend on welfare’. We now have enough data to know that in almost all the examples the promises have not been fulfilled and the outcomes worse than what would have been had the enterprises been maintained in the public sector and motivated to provide public service rather than private profit. The same mistake is being made with the response to the climate emergency. Economists and commentators are claiming we need to ‘repeat the

Pepe Escobar relies heavily on Michael Hudson’s economic analysis for his five "variables."Sputnik InternationalPepe Escobar: Five Variables Defining Our FuturePepe Escobar

For the record. Warren Mosler.Seeing the ForestThis Is How Money Works (Video)Dave Johnson

Today, I reflect on the latest public finance data released by the British Office of National Statistics which shows the fiscal deficit is smaller than expected. Even progressive journalists have written this up as providing more scope for pre-election largesse to be provided. The fact that the fiscal balance is lower provides no more or no less scope for the government to net spend. The relevant questions that should be answered before such an assessment can be made are ignored by the journalists, including the fact that the unemployment rate is rising and the supply-driven inflation is falling fast.William Mitchell — Modern Monetary TheoryLower British fiscal deficit gives the central government no more or no less capacity to net spend to reduce unemploymentBill Mitchell | Professor in

I keep hearing from friends who live in Britain that I will be shocked when I get there on Thursday of this week after a nearly four year absence. One friend, who has just returned said that the deterioration in the public infrastructure is now fairly evident. Despite my absence, I have been keeping a regular eye on the data and so these anecdotal reports and reflections come as no surprise. It is obvious that the Tory government has sought a depoliticisation strategy by cutting local government spending capacity as a way of diverting blame for the consequences of their austerity push. The problem now is that after 13 or so years of Tory rule, the cuts are eating into the very essence of civil society in Britain. Like all these neoliberal motivated cuts, the cuts to council grants will

More on "inflation" and the policy rate.Bond EconomicsWhy The "Friedman Thermostat" Analogy Should Be Uncomfortable For The MainstreamBrian Romanchuk

Iran’s Supreme Leader Ayatollah Khamenei gave his official approval to a new 20-year comprehensive cooperation deal between the Islamic Republic of Iran and Russia.The agreement will replace the 10-year-deal signed in March 2001 and has been expanded not only in duration but also in scope and scale.The new deal includes far-going agreements on defense and energy.Iran previously concluded extensive trade deals with China, as well as a "strategic partnership." Iran is also approved for membership in BRICS, SCO and BRI.Oilprice.comRussia And Iran Finalize 20-Year Deal That Will Change The Middle East ForeverSimon Watkins

We can’t forget this QT is still happening in the background too… in view of S&Ps recovering back to a old 2 year high this week…Fed steadily keeps working this balance down and it at least takes some reserve asset pressure off “money center” banks that have ample/excess reserves… This “unprinting money!” is supposed to be bearish according to monetarists… yet equity index values are currently back to all time highs after a 2 year hiatus…Concomitant the daily RRP sub-account is being reduced… daily RRP account balance is down to $600B having been $2.3T a year ago …. but still any non zero RRP balance means reserve assets are flowing towards banks that don’t have the regulatory capital to posses them and accordingly have to figure out how to divert them or otherwise apply reduced values to

More on "inflation."Bond Economics Waller CommentsBrian Romanchuk

Economist Stephanie Kelton has made a name for herself by insisting that deficits don’t matter. In an interview with Jacobin, she argues that we’re seeing a paradigm shift away from free-market dogmas and austerity.JacobinStephanie Kelton Thinks the Conventional Wisdom Is ChangingLukas Scholle interviews Stephanie Kelton, professor of public policy and economics at Stony Brook University,

Danny Haiphong interviews Micheal Hudson. Video and transcript.Michael Hudson — On Finance, Real Estate And The Powers Of NeoliberalismCredit the Economic PlannerMichael Hudson | President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City, and Guest Professor at Peking UniversityIndia and Global Left interviews Michael Hudson. Video and transcript.India and Global LeftPerfecting ImperialismMichael Hudson | President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City, and Guest Professor at Peking University

Episode 10 in our new Manga series – The Smith Family and their Adventures with Money – is now available. We are approaching the climax for Season 1.Have a bit of fun with it and circulate it to those who you think will benefit …William Mitchell — Modern Monetary TheoryThe Smith Family manga continues – Episode 10 is now availableBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

Nice rant… Dems in big trouble….Best rant ever. 🔥🔥🔥“4 years ago my rent was $1,200 a month… it’s now $2,100!”“My car insurance from 4 years ago until now…has gone from $130 to $240 per month!”“My electric bill was averaging $45, now it’s averaging $125!”pic.twitter.com/5Zo06zIqNp— I Meme Therefore I Am 🇺🇸 (@ImMeme0) January 17, 2024

OverviewSince 2020, the richest five men in the world have doubled their fortunes. During the same period, almost five billion people globally have become poorer. Hardship and hunger are a daily reality for many people worldwide. At current rates, it will take 230 years to end poverty, but we could have our first trillionaire in 10 years.This report shows how a huge concentration of global corporate and monopoly power is exacerbating inequality economy-wide. Seven out of ten of the world’s biggest corporates have either a billionaire CEO or a billionaire as their principal shareholder. Through squeezing workers, dodging tax, privatizing the state and spurring climate breakdown, corporations are driving inequality and acting in the service of delivering ever-greater wealth to their rich

Economics fails not merely to account for biophysical limits to growth but to account for actual and potential alternative provisioning systems. Instead, talk of ‘the economy’ makes an implicit ontological claim that there is only a singular form of modern economy: the capital accumulating, price-making market economy. Economics has then become limited to a discussion of market capitalism and how it can be maintained in light of its evident failings. Hence, a new critical orthodoxy has arisen that seeks to maintain ‘business as usual’. Recognising that there is considerable potential for alternatives to current economic systems is a first step beyond this orthodoxy. Economics must go much further to become a science of social ecological provisioning that recognises and provides for

Read Yves Smith’s intro for a significant qualifier.Naked CapitalismChina is the world’s sole manufacturing superpowerRichard Baldwin | Professor of International Economics IMD Business School, Lausanne; VoxEU Founder & Editor-in-Chief VoxEU.orgOriginally at VoxEU

The latest information from Japan suggests that in December 2023, its inflation fell sharply for the second consecutive month and that one might conclude the inflation episode is coming to an end. The Bank of Japan made the assumption that this supply-side inflation was temporary and would subside fairly quickly once those constraints eased. And they were right. All the other central banks somehow convinced themselves that the inflation was demand-driven and have been needlessly pushing up interest rates. The experiment is nearly over and I think it is clear that the Japanese path was the sound one. At that point, the New Keynesian academics and officials should resign. After that, as it is Wednesday, we have some music to soothe our souls….William Mitchell — Modern Monetary TheoryJapan

The social cost of greenhouse gas (GHG) emissions, considered the single most important measure in addressing the climate crisis, is generally defined as an estimate of societal damages, including health harms, resulting from unpaid or externalized GHG emissions. Researchers have been calculating this cost for several decades. Federal agencies began regularly incorporating the social cost of these emissions in 2008 — today, more than 80 federal regulations reflect its use. Despite the fact that GHG emissions are defined as the greatest threat to human health this century, the social cost of the health care industry’s emissions has somehow escaped the interest of the Department of Health and Human Services (HHS).Negative externality. "Privatize the gains, socialize the losses."While not

I got a question about references for post-Keynesian theories of interest rates. My answer to this has a lot of levels, and eventually turns into a rant about modern academia. Since I do not want a good rant to go to waste, I will spell it out here. Long-time readers may have seen portions of this rant before, but my excuse is that I have a lot of new readers….Bond EconomicsA Response To A Question About Post-Keynesian Interest Rate Theories (…And A Rant)Brian Romanchuk

Pepe Escobar’s forecast on Eurasian development in the coming year.Strategic Culture Foundation (sanctioned by the US Treasury Department)Year of the Dragon: Silk Roads, BRICS Roads, Sino-RoadsPepe EscobarIf SCF is blocked, you can access the article at The Alternative World here.

This aggregate general price increase isn’t going to be reversed by November by keeping the current risk free rate static… so the Biden people are stuck with this politically … and the inequity of economic outcomes being caused by this high risk free policy rate they continue to impose…Democrats sacrificing their political prospects in a deranged defense of art degree monetarism…🇺🇸US Inflation Rate: AggregatedAverage American purchasing power eroded by 22.37% Since Jan 2020. pic.twitter.com/1TreF01Air— Truflation (@truflation) January 8, 2024

Daily Kos? Yep. At least some of the so-called "left" are waking up?The quotes is from a recent piece by James K. Galbraith and the post refers to Stephanie Kelton for explanation.Daily Kos"Medieval doctors drew blood; modern central bankers raise interest rates"Bethesda 1971