Mike Norman Economics

The world is waking up to a new reality post the devastating pandemic that brought everything to a grinding halt. One of them is the rise of China as the undisputed new economic superpower.It looks like state planning works much better than the neoliberal free market, and I'm sure everyone knew that anyway, but the elite wanted to have their finger in everything, so it all got privatised. The West's handling of the Covid pandemic was disastrous, so China is now out at front. China’s economic...

The dynamic stochastic general equilibrium (DSGE) model literature is ever-growing, and new features are being continuously added. This makes it difficult to make generalisations about the literature. However, from a macro modelling perspective, we are mainly interested in models that might be used by a central bank to set interest rates. Even if we are not central bankers ourselves, we presumably want to understand how central bankers see their policy lever as working.... Bond...

How about letting the market work? Why not let the price of monoclonal antibodies rise until supply equals demand?If we did so, a thousands medical ethicists would scream about how rationing by price favors the rich.Suppose instead that we ration by political power—give it first to people with lots of clout:The Money IllusionPower >>>>> moneyScott Sumner | Ralph G. Hawtrey Chair of Monetary Policy at the Mercatus Center at George Mason University

But the loss of Farzad-B is only the beginning. The India-Iran relationship awaits a strategic setback. Looking ahead, the forthcoming Malabar Exercise with Australia’s participation heralds a tumultuous period ahead where India and Iran’s core interests will no longer be reconcilable.Without doubt, India’s Quad strategy will complicate its relations with Iran. None of the Persian Gulf states (or Israel) will want to be part of the Quad, either, since they are in the same predicament as the...

For the record.My view on this is that it fails to correctly present the MMT position (again). MMT is a macroeconomic theory based on institutional analysis rather than being either an axiomatic system like conventional economics or a socio-economic and political analysis like Marxian economics. That is to say, MMT is framed in terms of the existing world system. It is an alternative to "neoliberalism," in so far as it is in the Paleo-Keynesian tradition (versus the New Keynesian or...

Add the Blue Wave to market hopes and jitters. On top of stimulus, Covid and everything else. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/mmt-trader/?s2-ssl=yes/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman

From a bond market practitioner's perspective, model testing is straightforward: does it make money? The ability to make money after model implementation (and not just "out of sample") is a simple quantitative metric -- although one might need to wait for a large enough sample to test this. Not everyone is a market participant, and they want to evaluate models on other metrics (e.g., does it help guide policy decisions?). However, the key insight of the "does is make money?" metric is that...

 MMT continues to get around. Now Ghana. Good letter.Seems that The Deficit Myth is sweeping the earth.JoyOnlineAn open letter to the Hon. Minister for Finance and Economic Planning: Can Ghana afford it?Papa Sam Blankson, MSc. Economics (Money, Banking & Finance)/ over 8 Years of Combined Experience in Banking & Asset Management. Anita Yankey, MSc. Finance/ BSc. Economics & Finance/ over eight years of combined experience in Asset Management and Corporate Communication

And the fact that we are even discussing a once-outlandish theory such as MMT so openly today stems precisely from the difficulties that central banks have encountered in generating sustainable inflation.So while it’s certainly an issue to watch, it’s perhaps also wise to be wary of taking an inflationary future for granted....Money WeekHow will we repay our vast debt pile? Do we even need to?David C Stevenson in association with PIMCO

Stress can be constructive. It can make you stronger. Depends on your attitude. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/mmt-trader/?s2-ssl=yes/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman