Mike Norman Economics

There are conditions under which governments can create money—or debt—without fear of inflation or excessive debt burdens. There are other conditions under which debt or money creation can lead to inflation and balance sheet problems.This article is fairly positive towards MMT. As long as the new government money boosts the economy, MMT will work, says Michael Pettis. It is only when money is borrowed (or created) and spent in ways that do not cause GDP to rise that the debt burden rises....

 Today’s challenges demand radical action. The old orthodoxy of free markets and hands-off government won’t cut itThe Rentier economy and neoliberalism have failed to bring prosperity to our societies. Some of their ideas revive the economics of John Maynard Keynes, who saw that government spending is needed to stimulate demand for goods and services during a recession. More recently, most economists have recognised that in an era of ultra-low interest rates, fiscal policy – spending and...

 Simon Wren-Lewis is not yet an MMT convert but moving closer. He is still clinging to the illusion of monetary policy effectiveness and in this piece he does not address the MMT critique of monetary policy. Moreover, he thinks that a floating rate system requires monetary policy rather than freeing the need for it as under a fixed rate convertible system in which interest rate policy addresses demand for conversion. His answer to the question, Is it true that "anything we can actually do we...

Herd immunity will not comeYou don't need to get a vaccine now as the new Delta variant means everyone will get Covid, although the infected unvaccinated will become a burden to hospitals, taking up their valuable time and resources, as well as causing unnecessary expense I will be getting a third booster covid vaccine along with the flu shot when it's offered here in the UK.  Andrew Pollard, Oxford vaccine teamClear that the delta variant can infect people already vaccinatedMaking herd...

The daily flows data suddenly took a turn lower. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics: https://mikenormaneconomics.blogspot.com/

 It's possible we could eliminate Covid eventually, except millions of people will probably refuse the vaccine. I never thought so many people would be influenced by that crack pot, David Icke. Aug.30 -- NRx Pharmaceuticals CEO Dr. Jonathan Javitt says they are working with Israel on a Covid-19 vaccine that targets Covid variants. He says vaccines from last year are becoming less effective. He's on "Bloomberg Markets."[embedded content]NRx and Israel Developing Covid-19 Vaccine to Attack...

Crypto will probably be zooming again next year. I agree with John Paulson, though, it's backed by nothing, so could dissappear overnight. I think he describes it quiet succinctly. He also predicts that massive inflation may coming soon, but let's hope not."cryptocurrencies like Bitcoin and Ethereum, which promise independence from governments and large financial institutions, 'will eventually prove to be worthless,' "'Once the exuberance wears off, or liquidity dries up, they will go to...

The US sponsors kidnappings in foreign countries Huawei’s chief financial officer, Meng Wanzhou, has been detained in Canada now for over 1,000 days as she fights extradition to the United States. Political and economic affairs commentator  Einar Tangen discusses.[embedded content]CGTN - Huawei CFO, Meng Wanzhou, still detained in Canada

What is the “new mercantilism”? Joan Robinson says:…Nowadays governments are concerned not just to maintain employment, but to make national income grow. Nevertheless, the capitalist world is still always somewhat of a buyer’s market, in the sense that capacity to produce exceeds what can be sold at a profitable price. Some countries have experienced spells of excessive demand, but this corrects itself only too soon. The chronic condition for industrial enterprise is to be looking round...

Note: This is an unedited excerpt from my inflation primer manuscript.Even if we put aside the atypical argument that an increase in the money supply is how to define inflation, there is a widespread belief that increasing the money supply causes inflation (as normally defined). These beliefs can be traced back to what is termed the Quantity Theory of Money, which has a long history in economic thinking.I am extremely allergic to the Quantity Theory of Money. That said, my plan within this...