Mike Norman Economics

Kelton schools Krugman on deficits and rates.

What the ECB announced is not stimulus. It’s more bad monetary policy.

Stephen Law is a philosopher who wrote the book, Believing Bullshit - How Not To Fall Into an Intellectual Black Hole.  The Evidence [for anti -Semitism in the Labour Party] What's the evidence supporting the allegation that Labour has an anti-semitism problem? For the most part it consists of a few hundred complaints to the Labour Party, out of well over half a million members. That's a small fraction of one percent of the membership. And then there are various other alleged cases of...

I decided to separate this from the Magic Money Tree post below because I felt it distracted from it and could generate two different discussions. In that article they spoke about what money is which got me thinking about it again. This is just a very simplified view of how money works in society, but it helps me to understand it.This is my theory of what money is: that it is work in a stored, unused form which is denominated in tokens. It is really a stored claim for work, and with it we...

Modern Monetary Theory (MMT) has gained prominence since the global financial crisis. The rising star US politician Alexandria Ocasio-Cortez said recently we should be “open” to its ideas, and some mainstream economists have given it a (qualified) endorsement.  For many, it offers a powerful critique of the damaging austerity policies that were implemented in the western world since the global financial crisis, and an important plank of new progressive thought.  MMT also...

Well, it's not my idea of Christianity, where we were taught at school to love our enemies and turn the other cheek. We were taught about sharing and compassion and helping the needy - where Jesus said blessed are the poor for they shall inherit the Earth. We were taught about forgiveness and universal love. We were taught that being greedy was bad.Christians United for Israel are campaigning for a war with Iran and say the Muslims are controlled by the Devil. They want a war with Islam, but...

[embedded content] Virtually every time Neoclassical Economists explored the stability of an equilibrium in one of their models, they found it was unstable. How did they react to this discovery? By either ignoring it, or by using elaborate workarounds to avoid it. In the process, their analysis has gone from Walras' original vision of a simple price adjustment process which could lead to all markets being in equilibrium at once, with agents knowing only their own tastes, their existing...

Tariff's are having the reverse effect. I said this would happen.

Paul Krugman’s macro framework is leading him astray. Stephanie Kelton takes on Paul Krugmen. It looks like Albert Edwards is right, MMT has excellent models. MMT is becoming confident.He used the same model to fight the deficit scolds, who were pushing austerity during the Great Recession. (And he deserves credit for being on the right side of that debate!) But his defense of deficits was always contingent on being in a depressed economy, where he argued that monetary policy had become...

Like Powell last week and other mainstream economists, Summers uses inapplicable arguments and totally misrepresents the MMT position.