Mike Norman Economics

The answer is going to surprise you.

Decolonize to Dedollarize! I’m often asked whether BRICS is going to be the game-changer that will disrupt the current geopolitical hierarchy, dedollarize the system, and create a new multipolar word. My position has always been that we can’t dedollarize a system that hasn’t been structurally decolonized yet, and that no new multipolar world can be born without Africa and the rest of the Global South being repositioned away from the bottom of the global hierarchy and at the center of a New...

His latest intervention (November 28, 2024) –Europe’s Economy Is Stalling Out – was published by Project Syndicate, which regularly gives space to these nonsensical mainstream articles.The simple proposition that Rogoff offers is:"As Germany and France head into another year of near-zero growth, it is clear that Keynesian stimulus alone cannot pull them out of their current malaise. To regain the dynamism and flexibility needed to weather US President-elect Donald Trump’s tariffs, Europe’s...

David Bholat recently wrote “How to Modernise Central Bank Balance Sheets: No Notes.” It is partly in response to this article. The idea is that banknotes (“dollar bills”/”pound notes” etc. issued by the government should not be classified as a liability, rather as some form of capital or possibly taken off the balance sheet. I have run into variants of this idea in the past (the stronger version being that all forms of the monetary base are not liabilities), and the root idea is that...

Scott Bessent is aware of MMT but he has a faulty understanding of what MMT says, Kelton argues. On the positive side, he is not clueless, like most others. For example, he gets that high rates are may be stimulative and low rates contractive, based on policy outcomes of the Bank of Japan.The LensWhat Trump's Pick for Treasury Secretary Gets Right (and Wrong) about MMTStephanie Kelton | Professor of Public Policy and Economics at Stony Brook University, formerly Democrats' chief economist on...

Be careful what you preach for it just might happen. 

Are PTJ, Drunkenheimer and Guuundddlaaach still short?

Plug for Randy Wray's popular-access book on basic MMT.Lars P. Syll’s BlogMoney for beginnersLars P. Syll | Professor, Malmo University

Why would you have your RRP rate above your min FFR target and then not understand why MMMFs won’t fully engage in Tsy markets?How stupid are these f-ing people?When Fed did RRP in the first place they created a competing risk free asset class to Tsy securities which was bad enough… but then set the rate higher than your min target?#Fed officials are mulling a 5 bps cut to the reverse-repo rate to align it with the lower end of the federal funds target range. Nov meeting minutes highlight...

Weeks ago I said if Elon wants to cut spending then he should cut interest payments. Kelton agreed.