Mike Norman Economics

The Trump administration has really upset China, which is now trying to become much more independent.China will soon be flying more planes than the US and Europe, so it will be a massive loss for Boeing and Airbus if China develops its own planes.Rick Sanchez says that Boeing is so linked to the US government that it is almost a state owned industry.China is Boeing’s top client country by far. But now China is getting ready to make their own planes, potentially disrupting the Boeing-Airbus...

The American Conservative To End Endless Wars, We Must Give Up Hegemony Daniel Larison Reminiscence of the FutureSic Transit Gloria Mundi. Some News. Andrei Martyanov The NationWill Russia Be Driven From the West? Stephen F. Cohen | Professor Emeritus of Russian Studies, History, and Politics at New York University and Princeton UniversityAntiWarTrump Makes Another Bad Choice for National Security Advisor Daniel Larison Yahoo NewsExclusive: Russia carried out a 'stunning' breach of FBI...

Oh this is just too good....LOL!!! I guess they "never read the MMT literature!" where they would have learned they only should ask for a basis point above FFR!!! Two government-backed financial giants, Fannie Mae and the Federal Home Loan Banks, both stepped up their repo lending at higher rates on Tuesday, according to people familiar with the matter.  The home-loan banks, a network of government-backed lenders, were offering to lend overnight at 4% Tuesday morning, twice the recent...

The correct question is, Can we not afford a GND? So when we look at the cost of the climate proposals out there against today’s macroeconomic background, the question should not be, are they too expensive? The question should be: Are they expensive enough? The purpose of policy is meeting policy goals effectively and efficiently. This means getting as close as possible in the design solution to "just right — not too much and not too little."But in the case of serious challenges...

Victoria Guida: 25:18 Victoria Guida with Politico. Another money-market question. Banks have been pointing to liquidity rules as having contributed to some of the volatility we’ve seen in repo markets and potentially some capital rules as well. Are you all looking at whether some tweaks to the liquidity coverage ratio might help and also, what is the status of the net stable funding ratio rule? Are you all still planning on putting that out soon? Jerome Powell:...

Did exactly what I said they would do.

Are the faults of capitalism curable, or are they instead symptoms of a chronic disease? This is the question posed by Martin Wolf: What we increasingly seem to have…is an unstable rentier capitalism, weakened competition, feeble productivity growth, high inequality and, not coincidentally, an increasingly degraded democracy. There is much to admire in this piece. But I fear it understates the problem with capitalism.... Falling rate of profit?Stumbling and MumblingThe trouble with...

At least to this observer, Europe and the U.S. bring to mind the fumbling and growing desperation that Japan went through during the long period of political instability before strongman Abe arrived. To turn modern monetary theory into practice, you need functioning and decisive fiscal coordination and plans that go beyond the expediencies of annual budget cycles or election cycle pork-barreling. No fiscal policy vision, no fiscal dominance... make no mistake! Abe-Aso-Kuroda do know what...

This is interesting from the point of view of evolution of MMT criticism.It's not the same old "printing money" argument but a refurbished one that at least attempts to get what MMT says, even though it fails. I think that it is more likely ill-informed rather than intentional caricature.But it does indicate that the opposition is realizing that it has to deal with MMT in a way that appears serious rather than back of the hand, just dismissing as "obvious" nonsense.So I would count this as...

This is Part 2 of my two-part commentary and analysis of the – Monetary policy decisions – by the ECB (September 12, 2019). In Part 1, I discussed the shifts in the deposit rate and the changes to the Targeted longer-term refinancing operations (TLTROs). In Part 2, I am focusing on the decision to introduce a two-tiered deposit rate on excess reserves, which is designed to reduce the costs of the penalty arising from the negative deposit rate regime that the ECB has had in place since June...