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The author Thomas Palley
Thomas Palley
Dr. Thomas Palley is an economist living in Washington DC. He holds a B.A. degree from Oxford University, and a M.A. degree in International Relations and Ph.D. in Economics, both from Yale University.

Thomas Palley: Economics for Democratic and Open Societies

Another Thomas Palley Critique Of Neochartalism — Ramanan

Another Thomas Palley Critique Of Neochartalism — Ramanan For the record. My view on this is that it fails to correctly present the MMT position (again).  MMT is a macroeconomic theory based on institutional analysis rather than being either an axiomatic system like conventional economics or a socio-economic and political analysis like Marxian economics. That is to say, MMT is framed in terms of the existing world system. It is an alternative to "neoliberalism," in so...

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What’s wrong with modern money theory (MMT): macro and political economic restraints on deficit financed fiscal policy

The essential claim of MMT is sovereign currency issuing governments, with flexible exchange rates and without foreign currency debt, are financially unconstrained. This paper analyzes the macroeconomic arguments behind that claim and shows they are suspect. MMT underestimates the economic costs and exaggerate the capabilities of deficit financed fiscal policy. Those analytic shortcomings render it […]

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Bernie Sanders: Nothing to Fear Except Fear Itself

“The only thing we have to fear is fear itself.” Eighty-seven years ago those were the words of Franklin Delano Roosevelt in his 1933 inaugural speech. Today, they resonate with Senator Bernie Sanders’ presidential campaign, which confronts a barrage of attack aimed at frightening away voters. Fear is the enemy of change and the friend […]

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Do current times vindicate Keynes and is New Keynesian macroeconomics Keynesian?

Thomas I. Palley, Esteban Pérez Caldentey, and Matias Vernengo, Review of Keynesian Economics, January 2020. Professor Robert Rowthorn delivered the second annual Godley-Tobin lecture in New York City on March 1, 2019. The title of his lecture was “Keynesian economics: back from the dead?” and it is published in this issue of the Review of […]

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The economics of negative interest rates: editors’ introduction

Thomas Palley, Louis-Philippe Rochon, Guillaume Vallet , Review of Keynesian Economics, April 2019. The Great Recession (2008/9) triggered by the financial crisis of 2008 has had considerable impact on the conduct of monetary policy. Before the recession, monetary policy was largely based on a New Consensus-type macroeconomic model and it targeted inflation via a Taylor […]

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