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New Economic Perspectives

Standard Money Theory and the Coronavirus

By J.D. ALT The theme and illustrations of this essay are from the new book “Paying Ourselves to Save the Planet.” It might seem, as we observe the U.S. government “instantly” generating $2 trillion new dollars for direct payments and grants to people and businesses, that the coronavirus pandemic has shed a new light on the authenticity (and necessity) of modern money theory (MMT). But that light, if it is being shed at all, is illuminating instead the dramatic limitations of the...

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Manhattan Project to prevent Hyper-Inflation

By J.D. ALT It’s ironic that, at this moment, when the truthfulness and utility of modern money theory (MMT) is being publicly realized—(and even potentially implemented!)—that its singular vulnerability must emerge as a real concern: hyper-inflation. The most recent thing I’ve written—Paying Ourselves to Save the Planet­­—addresses the issue of hyper-inflation as follows: “Hyper-inflation” is a rate of inflation that happens so rapidly there’s no opportunity for people and businesses...

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STANDARD MONEY THEORY

By J.D. ALT The last two and a half months I’ve been at work on a new book. As it evolved, I found I was approaching MMT from a new direction—one which made an explanation of MMT much less counter-intuitive and, perhaps, less controversial. The approach is relatively simple and straight-forward: follow what I began calling “standard money theory” step by step until one reaches a perspective that has, almost seamlessly, become “modern money theory.” The book first considers why the...

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MMT is a Political Problem: Part 2

Thornton Parker       In the first part of this series, we explained why MMT should be seen as a political problem rather than just an educational one.  In this concluding part, we will discuss where MMT promotion is most likely to fail or have good chances of success.  First, consider some poor prospects.          All readers of NEP know how Social Security works and it seems like a natural for MMT.  But is it?  Wall Street sees the program as a leak from what should be their profitable...

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MMT is a Political Problem: Part 1

By Thornton Parker        The way a problem is seen can determine how or even if it gets solved.  When the French engineer, Ferdinand de Lesseps, was picked to build the Panama Canal, he saw it as another excavation problem as his Suez Canal had been.  But Egypt was flat and Panama had a mountain.  When the United States took over the job, John Stevens, who was put in charge, saw it as a railroad problem.  The biggest task was to move ninety-six million cubic yards of rock and earth, as...

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GW, CC, and MM

By Thornton Parker   The way a problem is seen may determine how or even if it gets solved.  Global warming (GW) and climate change (CC) are going to scramble many ideas about how developed economies work.  At root, GW and CC must be seen as money problems, and modern money (MM) is the key to solving them.         Energy companies spend money to find, extract, and market fossil fuels.  Other companies use money to create products and services that consume fossil fuel energy.  Money...

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21st Century Machiavellians 3: The Clash of Machiavellians, the Billionaire Class, and an Anti-Machiavellian Politics

By Michael Hoexter, Ph.D. In the final section of this essay, I will look at the combined effect of the conflicts and collusion between the two types of Machiavellian political actors that dominate the higher offices and influential media organizations in the United States and to a lesser degree in other countries today.  Looking solely and narrowly at one party or the other encourages myopia and the creation of a “voodoo doll” in which all manner of evil is thought to be embodied, i.e....

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21st Century Machiavellians 2: The Gaslighting, Neo-Fascist Gangsters of the Republican Party

By Michael Hoexter, Ph.D. While describing the machinations of the Democratic Party Establishment creates an repellent vision of political scheming and ethical compromise, today’s Republican Party is a few qualitative steps more repellent, more reactionary, and at the same time simpler to describe.  To compare and create a realistic vision of the current American political landscape, one has to be able to conceive of both “bad” and “worse”, i.e. degrees of moral compromise and turpitude...

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21st Century Machiavellians 1.2: Elites View the Democratic Party as a Containment Vessel for Popular Discontent

(This is a 3-part essay divided here into a total of 4 installments, with the first part divided into two) By Michael Hoexter, Ph.D. Attracting Popular Discontent The basic structure of concentric circles of the discourse and ideological “space” of a political party or partisan organization, described in the foregoing could apply to almost any political party or for that matter any group with a relatively passionately held set of beliefs against which they believe others are opposed. ...

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STATEMENT: House Budget Committee, “Reexamining the economic costs of debt”, Nov 20, 2019

By L. Randall Wray This blog is based on the testimony I provided to the US House of Representatives. My written statement will be published in the Congressional Record (a version is also at the Levy Economics Institute: http://www.levyinstitute.org/publications/statement-of-senior-scholar-l-randall-wray-to-the-house-budget-committee. The full statement was co-authored with Yeva Nersisyan. I will argue that the Federal Government’s deficit and debt are not so scary as we are led to...

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