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Mike Norman Economics

Senior mainstream economist now admits central banks are not as independent as many believe — Bill Mitchell

The UK Guardian published quite an odd article the other day (May 30, 2024) by Mr GFC Spreadsheet Fudge Man Kenneth Rogoff – Why policymakers are more likely to risk high inflation during periods of economic uncertainty – which essentially claims that economic policy has been conducted for several years by institutions that do not meet the essential requirements that are specified by the mainstream New Keynesian macroeconomic approach, upon which the institutions have claimed justification....

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Odd posts from Warren Mosler claiming “crowding out.”

Investment boom, crowding out consumption.— Warren B. Mosler (@wbmosler) May 31, 2024 Odd "X" posts from Warren Mosler recently talking about "crowding out." He says business investment is "crowding out" personal consumption. This is an odd claim because crowding out is not a condition that would be claimed under MMT understanding, where money is a function of demand and where there is no theoretical limit to its creation. (Under a free-floating FX regime.)If business spending rises and...

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In Defense Of Deficits — Steven Desmyter

I invited Stephanie Kelton to speak at our Man Alternative Investment Symposium in Oxford in 2021. Kelton was Bernie Sanders’s economic advisor and a leading proponent of Modern Monetary Theory (MMT), a neo-Keynesian movement that asserts that there ought to be no theoretical limit to a country’s ability to borrow, providing that it is in control of its own currency. Kelton and Sanders were near-perfect exemplars of the kind of “fiscal irresponsibility” (as their opponents would see it) that...

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Government debt fears – more fiction from the mainstream media — Bill Mitchell

After all these years of trying, the insights provided by Modern Monetary Theory (MMT) still haven’t cut through. One doesn’t even need to accept the complete box of MMT knowledge to know that, at least, some of it must be factual. For example, how much brainpower does a person need to realise that a government that issues its own currency surely doesn’t need to call on the users of that currency in order to spend that currency? Even if we could get that simple truth to be more widely...

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The conceptual roots of the Global South’s debt crisis — Ndongo Samba Sylla

MMT taking hold in the Global South?The Jordan TimesThe conceptual roots of the Global South’s debt crisisNdongo Samba Sylla, head of research and policy for the Africa region at International Development Economics Associates, is a former technical adviser for the presidency of the Republic of Senegal and a co-author of “Africa’s Last Colonial Currency: The CFA Franc Story” (Pluto Press, 2021) and a co-editor of Economic and Monetary Sovereignty in 21st Century Africa (Pluto Press, 2021)...

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De-Dollarization Bombshell: The Coming of BRICS+ Decentralized Monetary Ecosystem — Pepe Escobar UPDATED

 Footsoldier posted this in the comments. I am promoting it to a post. So-called de-dollarization is envisioned to happen in two major steps stages each with many incremental iterations. The first stage stage is conducting bilateral trade in the currencies of the trading partners. This is already well advanced. However, this is not actual de-dollarization, which is the establishment of a competing monetary system with a goal of eventually replacing the USD as the primary global currency. No...

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