Mike Norman Economics

Wondering when we will finally see some evidence. This also suggests stock market rally over-extended. Trade and invest using the concepts and understandings of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/mmt-trader/?s2-ssl=yes/

MMT friendly. Favorite lines: Money is created in one of two ways: by the government making payments (Uncle Sam writes you a check, the bank then credits that to your account) or the bank extending a loan, in which case the bank credits money to your account against a contract saying you’re going to pay it back. The government extinguishes money by taking in taxes; the bank extinguishes it by taking in loan repayments. The question of how much money is created is determined by how much...

Now that many people have time on their hands... Open CultureAlbert Einstein Explains Why We Need to Read the ClassicsJosh Jones See also For these reasons, we should be on our guard not to overestimate science and scientific methods when it is a question of human problems; and we should not assume that experts are the only ones who have a right to express themselves on questions affecting the organization of society.... Einstein played the violin. See also Perhaps one of the...

In sum, we find that the U.S.-China trade war lowered the market capitalization of U.S. listed firms by $1.7 trillion and will lower their investment growth rate by 1.9 percentage points by the end of 2020. FRB — Liberty Street EconomicsThe Investment Cost of the U.S.-China Trade War Mary Amiti, vice president in the Federal Reserve Bank of New York’s Research and Statistics Group; Sang Hoon Kong, economics Ph.D. student at Columbia University; and David E. Weinstein Carl S. Shoup...

Recycling moves to another level.Fast CompanyYou can now buy used clothes online from Walmart Elizabeth Segran

Shooting from the hip and hitting oneself in the foot?Beat the PressWashington Post Tells Readers About Trump’s “Existential” Threat to China Dean Baker | Co-director of the Center for Economic and Policy Research in Washington, D.C.AlsoProject SyndicateCooperate with China or Suffer Andrew Sheng, Distinguished Fellow of the Asia Global Institute at the University of Hong Kong and a member of the UNEP Advisory Council on Sustainable Finance, and a former chairman of the Hong Kong Securities...

Arvind Ashta rejects MMT as hyerinflatonary, and the other options as problematical. He then proposes a Tobin tax and admits that it is probably unrealistic, too, since the finance sector bear the burden of being taxed.LSEWho pays for Covid-19? Assessing seven potential optionsArvind Ashta is a Senior Professor in the Burgundy School of Business, Université Bourgogne Franche-Comté, Dijon, France

An Austrian economist reviews Stephanie Kelton's new book.Marginal Revolution*The Deficit Myth* and Modern Monetary TheoryTyler Cowen | Holbert C. Harris Chair of Economics at George Mason University and serves as chairman and general director of the Mercatus Center

In recent weeks we have become accustomed to calling someone an ‘essential worker’. These are our most important people. They are, if the dictionary doesn’t lie, indispensable. They are extremely important. They are key, crucial, vital, and needed. They sound pretty darned special to me. They must be doing things that, were they not doing them, would bring the economy to a screeching halt. My goodness, they must be paid a lot. Surely anyone who is a vital cog in the machinery is paid...

I haven’t had time yet to fully work through the decision by the European Commission yesterday to provide grants and loans to struggling Eurozone countries. I will comment on that when I have had time to understand the implications and be in a position to provide fair comment. It seems to be a vastly inadequately response in quantum, on top of an existing lack of fiscal support. But more on that another day. Today, I am investigating the latest data from the ECB. On May 26, 2020, the ECB...