Tag Archives: Economics

In reaction to MMT statements that government spending must occur before taxes can be paid, it is sometimes noted that a household could pay taxes by borrowing from a bank that subsequently obtains reserves from the central bank. Whether this is true from inception of a modern money system will depend on the terms set down by the central bank in advancing reserves to banks. But supposing the terms are permissive, would it change anything of macroeconomic significance? Let’s take a brief...

In reaction to MMT statements that government spending must occur before taxes can be paid, it is sometimes noted that a household could pay taxes by borrowing from a bank that subsequently obtains reserves from the central bank. Whether this is true from inception of a modern money system will depend on the terms set down by the central bank in advancing reserves to banks. But supposing the terms are permissive, would it change anything of macroeconomic significance? Let’s take a brief...

Norbert Häring und das Endspiel des Kapitalismus .[embedded content]

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Sergio Cesaratto – The hawks’ trick to make Italy fall into a trap November 3, 2021 Economics, EU politics, EU-Institutions, Finance, National Politics, Regulation The future of European governance is still being discussed, but not in Italy. Italy runs the risk of being trapped in deceptively lenient rules Sergio Cesaratto is Professor of Growth and Development Economics and of Monetary and Fiscal Policies in the European Monetary Union,...

The logic of financial markets Professional investment may be likened to those newspaper competitions in which the competitors have to pick out the six prettiest faces from a hundred photographs, the prize being awarded to the competitor whose choice most nearly corresponds to the average preferences of the competitors as a whole; so that each​ competitor has to pick not those faces which he himself finds prettiest, but those which he thinks likeliest to...

This post concerns ten recent Marxist claims about MMT and one about Kalecki (a forerunner, in certain respects, of MMT). Some Marxists claim that: MMT fixates on the monetary, ignoring the real. MMT ignores social structure in favor of tweaks of the monetary system. MMT is incompatible with Marx on money. MMT falsely claims that fiat money changes the role and nature of money. MMT ignores the value of money. MMT-informed policy would destroy the value of money. MMT-informed policy would...

This post concerns ten recent Marxist claims about MMT and one about Kalecki (a forerunner, in certain respects, of MMT). Some Marxists claim that: MMT fixates on the monetary, ignoring the real. MMT ignores social structure in favor of tweaks of the monetary system. MMT is incompatible with Marx on money. MMT falsely claims that fiat money changes the role and nature of money. MMT ignores the value of money. MMT-informed policy would destroy the value of money. MMT-informed policy would...

On Diane Coyle’s Cogs and Monsters Macroeconomists seem to me the biggest offenders in not taking such empirical issues (of practical data handling) seriously enough. This might sound like sheer contrarianism given that macroeconomists are constantly wielding data; after all, their business is analysing the behaviour of the whole economy and forecasting its future path. My concerns are, first, that too few think about the vast uncertainty associated with...

Why economists should prefer accurate imprecision to inaccurate precision Microfounded DSGE models standardly assume rational expectations, Walrasian market clearing, unique equilibria, time invariance, linear separability and homogeneity of both inputs/outputs and technology, infinitely lived intertemporally optimizing representative household/ consumer/producer agents with homothetic and identical preferences, etc., etc. At the same time the models...