Mike Norman Economics

I've run across yet more lazy critiques of Modern Monetary Theory (MMT), arguing that "MMT says governments should just print money to stop the virus!", or similar nonsense. I may only be speaking for myself, my reading of MMT would lead to cautiousness with respect to the limits of fiscal policy at present. Given that we face considerable constraints on output capacity, we can see theoretical inflationary risks if fiscal policy was too active. (My base case view is in line with the...

Yesterday in my blog post – The coronavirus crisis – a particular type of shock – Part 1 (March 10, 2020) – I discussed some of the considerations that governments need to take into account when dealing with the economic damage that will result from the coronavirus crisis. I did not consider the health issues because I am unqualified to assess those other than to take into consideration what the health professionals are now saying as they gain more knowledge of the particular disease. In...

Russia rejected its OPEC+ partners' request late last week to further curtail its oil production next month because it understood that doing so would make its American shale rivals more competitive, which would in turn empower the US to continue weaponizing energy for geostrategic ends, thus eventually leading to a dangerous scenario that Moscow might have been powerless to reverse if it didn't act when it finally did.... One WorldRussia's Rejection Of OPEC+ Was The Result Of Cold...

"Loanable funds." "Hyperinflation." "No such thing as a free lunch." You get the idea.The SAIS ObserverModern Monetary Theory – What do SAIS faculty make of it? Lief Olson

Today’s blog post is shorter than usual but you do get to access a hour-long video where I talk with Indigenous leader and activist Noel Pearson about Modern Monetary Theory (MMT), how it impacts on his perceptions of options to improve indigenous well-being in Australia, and how it informs a new collaborative venture we are in the process of putting together – JUST2030 – as a response to the socio-ecological crisis that three decades of neoliberalism and the fiscal obsession with surpluses...

Cascading closures, event shutdowns. Trade and invest using the concepts and understandings of MMT. https://www.pitbulleconomics.com/mmt-trader/?s2-ssl=yes/

Making it even worse:BREAKING: Fed boosts money it's providing to banks in overnight repo lending to $175 billion amid sell-off https://t.co/X1DPuqcceT— CNBC Now (@CNBCnow) March 11, 2020

This is Financial Accounting not Regulatory Accounting but in any case the transaction here adds BOTH an Asset and a Liability: Currently, accounting standards require that repurchase agreements appear on balance sheets this way: First, repo borrowings are netted with repo loans when conducted with the same company, and only the net amount appears on the balance sheet.  Then (1) the borrower reports the net new cash as an addition to cash assets,  (2) it keeps the repoed securities in the...

Lucky Charms on the outs with Trump...Trump refuses to back Sessions in Alabama Senate primary, endorses football coach rival in major snub to former attorney general. https://t.co/508l0JH6Mm— John Solomon (@jsolomonReports) March 11, 2020

Strategy.New Economic PerspectivesMMT is a Political Problem: Part 1 Thorton Parker