The backers of Ocasio-Cortez’s bill released and then withdrew an FAQwhich seemed to suggest the investment would be paid for using the methods advocated by Modern Monetary Theory (MMT). MMT rightly argues, as against free-market economics, that a state with a sovereign currency cannot go bust. The state can create growth, and thus the means to pay back money borrowed; and it can create money, via the central bank, which can be used to lend to government.For many people on the radical left,...
Read More »Detroit Dan — MMT Elevator Speech
Frequent contributor to MNE, Detroit Dan, just posted this piece, with links. I think you will like it.MindorenyoMMT Elevator Speech Detroit Dan
Read More »Michael Hudson — Super-Imperialism at the Pentagon
Sputnik International interviews Michael Hudson. Audio and transcript.Michael Hudson — On Finance, Real Estate And The Powers Of NeoliberalismSuper-Imperialism at the PentagonMichael 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
Read More »My MMT comments triggered a lot of you.
When you say we can't spend what you are really saying is you are okay with lack. I am not.
Read More »NBC News – Senate has uncovered no direct evidence of conspiracy between Trump campaign and Russia
"We were never going to find a contract signed in blood saying, 'Hey Vlad, we're going to collude,'" one Democratic aide said. By Ken Dilanian WASHINGTON — After two years and 200 interviews, the Senate Intelligence Committee is approaching the end of its investigation into the 2016 election, having uncovered no direct evidence of a conspiracy between the Trump campaign and Russia, according to both Democrats and Republicans on the committee. NBC News - Senate has uncovered no direct...
Read More »Peter Cooper — Developments in Value Theory
Previously I have discussed how Marx’s well known aggregate equalities have been shown to hold under single-system interpretations of his theory of value. In the July 2018 edition of the Cambridge Journal of Economics, there is a noteworthy paper by Ian Wright that reconciles the classical labor theory of value with Marx’s prices of production within a dual-system framework. As with single-system interpretations, Marx’s equalities also hold under Wright’s approach. However, they do so in a...
Read More »Alexander Douglas — Paul Krugman on Functional Finance (UPDATED)
I don't link to the NYT since it stopped being a newspaper. Alex Douglas explains Paul Krugman's criticism there of MMT based on r > g.This is not a new criticism. It is a neoclassically based argument. It was raised when Thomas Piketty's Capital in the 21st Century made r > g famous.The expression r > g itself was criticized at the time, and I won't repeat it. Suffice it to say that that is a monetarist view that suffers from the insufficiency of neoclassical assumptions about...
Read More »Daniel Herborn — Gates takes issue with Ocasio-Cortez’s plans to raise income tax on the super-wealthy
The iconic business magnate and philanthropist also dismissed “modern monetary theory” as “crazy talk”. The theory has been embraced by progressive US politicians such as Bernie Sanders and Ocasio-Cortez, and, curiously, President Donald Trump. It dictates that governments should not be concerned about deficits because they control the printing of their own currency. This leads to the conclusion that inflation should instead be managed with interest rates. Does Bill Gates implicitly advance...
Read More »Brian Romanchuk — Real Estate And The Cycle
Real estate -- particularly residential real estate -- is an extremely important factor when discussing recessions in the modern era. To a certain extent, real estate is where economic theory goes to die. One possibility is that the theory was largely developed when the norms in real estate investment were conservative, so attention was moved to the industrial sector. However, the herd tendencies in the housing market may now overwhelm the industrial cycle. (This article is a set of notes...
Read More »Links — 12 Feb 2019
Mint Press NewsMass Protests in Haiti, Like France’s Yellow Vests, Threaten Modern Oligarchic Structure Whitney WebbMint Press NewsHow the Media Manufactures Consent for Regime Change in Venezuela Alan Macleod Moon of AlabamaRussiagate Is Finished Venezuela - 57% Say Maduro Is Their Legitimate President bNEOTrump Re-Sets the Sail for U.S. Nuclear Supremacy Salman Rafi SheikhReutersPompeo warns allies Huawei presence complicates partnership with U.S. ReutersApple iPhone sales in...
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