Mike Norman Economics

Too little public debt can be as damaging economically as to much public debt, since public debt is the one-to-one measure of deficit spending, and public spending increase flows, both financial and economic, in the economy. On the other hand, MMT shows that issuance of public debt is unnecessary for funding governments that are currency sovereigns and suggests that interest payments on public debt constitute a subsidy to bond holders.  Thus, the need arise to justify the continued...

This article is an introduction to the post-Keynesian approach to inflation. It is largely based on Section 8.1.1 of Professor Marc Lavoie's Post-Keynesian Economics: New Foundations (link to my review). Similar to the work on stock-flow consistent models, we start out with what is essentially an accounting identity: a statement that is true by definition. We need to understand the implications of the accounting identity before we worry about the behavioural aspects (which are not pinned...

I have very little free time today. I am now in Dublin and am travelling to Galway soon for tonight’s event (see below). Last evening I met with some Irish politicians at the Irish Parliament and had some interesting conversations. I will reflect on the interactions I have had so far in Ireland in a later blog post. But today (and next time I post) I plan to reflect briefly on my thoughts about the Second International Modern Monetary Theory which was held last weekend in New York City....

Trump tells the Saudi King he wouldn't last 2 weeks without US protection. Then he rants about oil prices being too high.Expect lower oil prices.Remember when Obama bowed?

An excellent video on how Labour will redistribute wealth in the UK. Workers will get a share of company profits up to £500 and then after that the government well take the rest to reinvest into the UK economy. Paul Mason says it will make entrepreneurs invest in high tech industries instead of low track ones like cleaning services because it's easy money. Everyone benefits, workers get a cut of the profits, society benefits from higher skilled jobs, and entrepreneurs get to do more...

Germany still in the driver's seat? This is an unconfirmed report.Zero HedgeItaly Folds To Europe, Pledges To Shrink Budget Deficit To 2.0%; Euro Surges Tyler Durden

China’s hopes of negotiating a free trade pact with Canada or Mexico were dealt a sharp setback by a provision deep in the new U.S.-Mexico-Canada trade agreement that aims to forbid such deals with “non-market” countries, trade experts said on Tuesday... Derek Scissors, a China scholar at the American Enterprise Institute in Washington, said the provision gave the Trump administration an effective veto over any China trade deal by Canada or Mexico. If repeated in other U.S. negotiations...

You heard this already but Caitlin Johnstone reminds us that this is only a token rather than a change of heart. Don't let down the guard or put the pitchforks away just yet. It ain't over by long shot. Don’t turn our fate over to depraved oligarchs for the price of a few dimes. Keep pushing these sociopathic bastards. Keep pushing them right off the stage. Caitlin Johnstone — Rogue JournalistBezos Bows To Pressure On $15/hr. Keep Pressuring Him. Keep Pressuring Them All.Caitlin...

He doesn't understand MMT, but it throwing in the towel anyway.Bloomberg OpinionBond Vigilantes Won’t Corral Stampeding Budget Deficits Brian Chappatta

Long and detailed.The InterceptI Just Visited Lula, the World’s Most Prominent Political Prisoner. A “Soft Coup” in Brazil’s Election Will Have Global Consequences. Noam Chomsky