Tag Archives: Economics

.[embedded content] Ett av de grundläggande feltänken i dagens diskussion om statsskuld och budgetunderskott är att man inte skiljer på skuld och skuld. Även om det på makroplanet av nödvändighet är så att skulder och tillgångar balanserar varandra, så är det inte oväsentligt vem som har tillgångarna och vem som har skulderna. Länge har man varit motvillig att öka de offentliga skulderna eftersom ekonomiska kriser i mångt och mycket fortfarande uppfattas som förorsakad av för...

In general the price system does not reveal all the information about “the true value” of the risky asset … The only way informed traders can earn a return on their activity of information gathering, is if they can use their information to take positions in the market which are “better” than the positions of uninformed traders. “Efficient Markets” theorists have claimed that “at any time prices fully reflect all available information” … If this were so then informed traders...

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MMT and the pandemic inflation So what is the MMT solution to dealing with inflation ex post—i.e. once the problem is here? There isn’t one. And I’d suggest running fast and far from anyone who offers you a quick and easy prescription for dealing with any and all inflation. Mainstream economists, of course, offer just such a solution. The Federal Reserve will fix it! After all, it’s already their job (dual mandate), and they can act quickly and...

An MMT perspective on the public debt problem One of the most effective ways of clearing up this most serious of all semantic confusions is to point out that private debt differs from national debt in being external. It is owed by one person to others. That is what makes it burdensome. Because it is interpersonal the proper analogy is not to national debt but to international debt…. But this does not hold for national debt which is owed by the nation to...

One last example of a recent technology that scaled exceptionally well comes not from business but from social activism. In the days following the murder of George Floyd by Minneapolis police officer Derek Chauvin in the spring of 2020, before anyone had been charged with a crime, the Grassroots Law Project organized a call drive to flood the phone lines and answering machines of public officials in Minnesota to demand justice. All volunteers had to do was call the number the Grassroots Law...

The VoCs approach to capitalism has the potential to transform economics. It tacitly emphasizes the plasticity of economies, whereby their character and outcomes are significantly a matter of choice. This paper augments VoCs theory to include a distinction between varieties and varietals of capitalism. Drawing on biology, varieties correspond to species and varietals correspond to […]

How to deal with the debt obsession .[embedded content]

We estimate the impact of the Green Revolution in the developing world by exploiting exogenous heterogeneity in the timing and extent of the benefits derived from high-yielding crop varieties (HYVs). HYVs increased yields of food crops by 44 percent between 1965 and 2010. The total effect on yields is even higher because of substitution towards crops for which HYVs were available, and because of reallocation of land and labor. Beyond agriculture, our baseline estimates show strong, positive,...

It began a few years ago, when prominent democracy rating organizations started downgrading the United States, putting its institutions on par with Panama, Argentina, or Romania. In retrospect, that seems like the good news. Last year, the international security and intelligence expert Greg Treverton predicted the breakup of the union in a piece titled Civil War Is Coming. And early this year, in a book titled The Next Civil War, journalist Stephen Marche outlined America’s many future...