Mike Norman Economics

A very good article here that comes closer than most to what I consider the crunch issue. The key point is that if a currency moves down so that imports become ‘more expensive’, then the ‘inflation’ that goes off is a distributional response that tries to eliminate some of those imports so that the exchange demands equalise. That also eliminates somebody else’s exports. The important thing to remember is that when a currency goes down, all the others in the world go up in relation to it and...

The decline of the dollar as a world currency has set a new record recently. In October, the euro replaced the dollar as the preferred currency for international payments for the first time in seven years. In the same month, the growth of the pound sterling and the Japanese yen as alternative models of global payment was impressive, indicating even more rejection of the American currency, until now considered absolutely hegemonic. About 37.82% of the money transfers that the Society for...

 Scott Sumner is not satisfied with the answers he received.If I were to try to develop a radical new macro theory, I’d try to come up with a way of explaining my new model using the framework of existing models. Actually, I often do that here, translating market monetarism into New Keynesian language. I’m not seeing that with MMT. And it’s not just me. I see other bloggers like Noah Smith, Paul Krugman, Brad DeLong, Nick Rowe, etc., who seem to have an equally hard time trying to figure out...

Whatever the reason, the darkness that started growing around the crimes committed by the big Wall Street banks during the Obama administration has now evolved into such a complete dark curtain that regulators are refusing to say what the crimes actually are that are being settled for huge amounts of money....Wall Street On ParadeBoth Citigroup and JPMorgan Have Now Received Huge Fines for Crimes the Regulators Won’t RevealPam Martens and Russ Martens

While India is managing the COVID-19 pandemic, it cannot lose sight of climate risk, which is rising. The coronavirus crisis holds profound lessons that can help us address climate risk—if we make greater economic and environmental resiliency core to our planning for the recovery ahead. Indeed, economic stimulus in the wake of the pandemic can help restore growth, while also addressing climate risk.India faces a rapidly changing and degrading physical environment. The challenges of water...

Scott Sumner asked a few questions about Modern Monetary Theory (MMT) (link), and this article is a short response to some of them. The issue at hand is the effect of open market operations, in particular, in the pre-2008 U.S. system (where reserves paid not interest)....Bond EconomicsComments On Scott Sumner's Questions About MMTBrian Romanchuk

It is Wednesday and just some odds and ends today, including a fabulous tapestry that has just been framed for me. In addition, there is a podcast and some great music. A typical Wednesday that is. And tomorrow, I am catching a plane for the first time in nearly 6 months as the internal borders open up within Australia, which means I can return to my Melbourne residence/office. I am worried about what state the fridge will be in after being idle for so long. And, on Friday, December 18, my...

Prime Minister Scott Morrison says Australia's pursuit of its national interests on the world stage has been wrongly interpreted as siding with the United States over China, declaring his government will not make a "binary choice" between the superpowers.In fresh attempts to thaw the frosty relationship between Canberra and Beijing, Mr Morrison used a speech to a British think tank to declare the most significant geopolitical challenge of the future would be dealing with the complexities of...

As long as fiscal flows remain this strong the market will keep on rising. And, Janet Yellen is going to be the new Treasury Secretary. 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

President-elect Joe Biden has been teasing his cabinet picks lately like he's a mid-tier indie rock band beginning a press campaign for a new album. This week, he hinted at a news conference last week that "all elements of the Democratic Party" would like his choice for Treasury Secretary. Now, he's set to unveil all of his official cabinet selections on Tuesday with the New York Times already reporting that Biden is picking Antony Blinken for Secretary of State. Now, I know you're probably...