by Summary:
This is an illustration of the political cost of Bernie not understanding and embracing MMT. He should have paid closer attention to MMT economist Stephanie Kelton when she was his economic adviser. 1. A currency sovereign cannot "go bankrupt." A currency issuer can always issue currency to cover its obligations in the currency of issue. In this case, default is a political choice rather than a financial necessity. 2. The only actual constraint on a currency soveriegn is the availability of real resources. This implies a financial constraint if effective demand created exceeds the capacity to supply real resources to meet it. Then accelerating inflation could result. 3. The United States government is a currency soveriegn. Affordability is never an issue. 4. A sovereign
Topics:
Mike Norman considers the following as important: affordability, bernie sanders, Medicare for All, MMT, single payer
This could be interesting, too:
This is an illustration of the political cost of Bernie not understanding and embracing MMT. He should have paid closer attention to MMT economist Stephanie Kelton when she was his economic adviser. 1. A currency sovereign cannot "go bankrupt." A currency issuer can always issue currency to cover its obligations in the currency of issue. In this case, default is a political choice rather than a financial necessity. 2. The only actual constraint on a currency soveriegn is the availability of real resources. This implies a financial constraint if effective demand created exceeds the capacity to supply real resources to meet it. Then accelerating inflation could result. 3. The United States government is a currency soveriegn. Affordability is never an issue. 4. A sovereign
Topics:
Mike Norman considers the following as important: affordability, bernie sanders, Medicare for All, MMT, single payer
This could be interesting, too:
Steve Roth writes MMT and the Wealth of Nations, Revisited
Bill Haskell writes Friendly Fire, Allies tangle over single-payer strategy
run75441 writes Corporate Healthcare being Handed ‘Get Out of Jail Free Cards’
Matias Vernengo writes On central bank independence, and Brazilian monetary policy
This is an illustration of the political cost of Bernie not understanding and embracing MMT. He should have paid closer attention to MMT economist Stephanie Kelton when she was his economic adviser.
1. A currency sovereign cannot "go bankrupt." A currency issuer can always issue currency to cover its obligations in the currency of issue. In this case, default is a political choice rather than a financial necessity.
2. The only actual constraint on a currency soveriegn is the availability of real resources. This implies a financial constraint if effective demand created exceeds the capacity to supply real resources to meet it. Then accelerating inflation could result.
3. The United States government is a currency soveriegn. Affordability is never an issue.
4. A sovereign currency issuer has a monopoly on the issuance of the currency and can exercise this monopoloy by setting the prices the government will pay, including the interest rate.