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Mike Norman Economics

Bank Reserves Demystified — Brian Romanchuk

Bank reserves feature prominently in Economics 101 discussions of banking. As is entirely typical for Economics 101 macroeconomics, the topic is either taught incorrectly or in a misleading fashion. Bank reserves — better referred to as “settlement balances” — are just private sector bank deposits at the central bank. If you know what a bank deposit is, you know what a “bank reserve” is....Bond Economics Bank Reserves DemystifiedBrian Romanchuk

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MAKING MONEY WORK FOR US: How MMT Can Save America — New Book by Randy Wray

Is money precious and scarce, necessitating iron fiscal discipline? Must the government always balance the books or risk ruin? Or is money, in fact, a flexible tool that can be used to mobilize our collective resources to serve those who need them?In this book, leading Modern Money Theory (MMT) advocate Randy Wray explains that the only real constraints on public policy are physical resources, technological capacity and political will: but never money. He shows how modern sovereign...

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OPEC+ agrees on oil output cut — MK. Bhadrakumar

The message is loud and clear: Saudi Arabia and Russia who form the axis of the OPEC+ are closely coordinating on shaping the world oil market even as they could be competing for market share....Bad news for the West. India PunchlineOPEC+ agrees on oil output cutMK. Bhadrakumar | retired diplomat with the Indian Foreign Service and former ambassador. See alsoThe chances of a G7 price cap on Russian oil being remotely effective are perhaps best summed up by a recent tweet from a Bloomberg...

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Sam Levy — Modeling Monopoly Money in Minsky

In 2021 I put out a working paper with my simple mathematical model that illustrated MMT’s theory of the determination of the price level. You can read the paper here, or an earlier version of the model in a blog post here. Then at the 2nd MMT Summer School in Poznań, none other than Steve Keen did a demo of his Minsky modeling software, and it occurred to me that it would be fairly easy to set up my model in Minsky. So I did it, and I’m going to show you the results in this post.A word of...

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‘Fiscal responsibility’ or the economy for us? — Peter May

On this subject I’ve read rumours – and no more than that – that the Truss regime would like to separate the Treasury from Economic Affairs – as, similarly for a short time, in Harold Wilson’s administration…That would. I think, be rather a good idea.We’d have an economic plan.And then it would be up to the Treasury to deliver it.An economic plan rather than a money plan.Because money is of course, created by government at will, in order to get things done....It appears that governments may...

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Russia, China, BRICS, World Economy — Tony Norfield

About the not-G7. Longish.Rich countries run the world economy. They are represented mainly by the G7 – the US, UK, Germany, France, Italy, Japan and Canada – and directly manage all major international bodies or greatly influence how these work. In the process, they set the terms for international trade and investment. Any country that disobeys their US-led ‘rules-based order’ is faced with sanctions, economic isolation and military threats. But the past six months has seen accelerating...

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Michael Roberts — Energy, cost of living and recession

I won’t go further into the myriad of proposals coming from the UK government, the opposition Labour party and various think-tanks about how to relieve or avoid the catastrophe ahead for millions of households in Europe and particularly the UK. I won’t because there is one thing that they all have in common – there are no proposals to end the market for energy prices or to bring into common ownership the energy companies, retail, distribution and wholesale (the UK TUC proposes...

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The Man in the High Castle: Alternate Reality Lessons for Modern Warfighters — Tom Ordeman, Jr.

Yeah, I know. The Kagan Klan's Small Wars Journal. But occasionally they post a good read. This one is fun. Frank Herbert's Dune is featured.Small Wars JournalThe Man in the High Castle: Alternate Reality Lessons for Modern WarfightersTom Ordeman, Jr.https://smallwarsjournal.com/jrnl/art/atreides-harkonnen-literary-corollary-self-awareness-and-host-nation-perception-small-wars

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Bill Mitchell — US labour market showing further signs of slowdown

Last Friday (September 3, 2022), the US Bureau of Labor Statistics (BLS) released their latest labour market data – Employment Situation Summary – September 2022 – which reported a total payroll employment rise of only 315,000 jobs (a major slowdown) and an official unemployment rate rose 0.2 points to 3.7 per cent. The participation rate also rose (somewhat reversing last month’s decline) and the broad labour underutilisation rate (U6) rose by 0.3 points, largely due to the rise in...

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