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Tag Archives: endogenous money

Elsewhere

Here is a post from a blog devoted to cybercommunism. The blogger is glowing about Paul Cockshoot's work on refuting Hayek's supposed refutation of the possibility of a post-capitalist society. William Milberg writes about how it is becoming more common to use the word "capitalism", a word mainstream economists had mostly stopped using. Herbert Giants and Rakesh Khurana write about the corrupting effects of neoclassical economics on what is taught in business school and then practiced by...

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Marc Lavoie — Advances In The Post-Keynesian Analysis Of Money And Finance

Marc Lavoie — Advances In The Post-Keynesian Analysis Of Money And FinanceThere’s a new article by Marc Lavoie in a newly released book which is an interesting read. Abstract:This chapter focuses on the various monetary themes that have been emphasized by post-Keynesian economists and that turned out to have been validated by the events that occurred during and after the subprime financial crisis. These include interest rate targeting by the central bank, interest rate spreads, endogenous...

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Marc Lavoie — A System With Zero Reserves And With Clearing Outside Of The Central Bank: The Canadian Case

Marc Lavoie — A System With Zero Reserves And With Clearing Outside Of The Central Bank: The Canadian CaseMarc Lavoie has a new paper in Review Of Political Economy in which he explains how the Bank of Canada, the central bank of Canada ?? is able to maintain the target interest rate at the center of the corridor with high perfection despite zero reserve requirement and clearing happening privately.Abstract:In a number of ways, implementing monetary policy in Canada stands apart from monetary...

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Lars P. Syll — Schumpeter–an early champion of MMT

Keeper quote from Joseph Schumpeter. He nailed endogenous money as "credit money" and observed correctly how "money" gets created by banks' extending credit — "they create deposits in their act of lending." This effect is now amplified through non-bank and quasi-bank financial institutions. The contemporary financialized economy runs largely on privately created credit. This has an even greater effect than Schumpeter likely anticipated. Economists' ignoring this unduly limit the scope of...

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Elsewhere: Popular Writing On Modern Monetary Theory

Some articles: Josh Barro, in New York Magazine. Noah Smith, in Bloomberg. Linette Lopez, in Business Insider. Michael Strain, also in Bloomberg. I do not assert that all points in these articles are well-taken. I think of MMT as descriptive. It combines endogenous money, functional finance, and chartalism. Much of its empirical evidence consists of qualitative descriptions of how financial institutions and central banks operate. One can imagine a policy regime where unemployment and...

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Hans Gersbach — Sovereign money: A challenge for science

There has been an intense academic and policy debate on what monetary architecture is the most appropriate recently, but many issues are still unresolved. This column looks at the circumstances under which the current system and the sovereign money system yield the same outcomes, the core arguments in favour of the current system, and what advantages a sovereign money architecture might offer.... Vox.euSovereign money: A challenge for scienceHans Gersbach | Professor at CER-ETH - Center of...

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Basil Moore (1933-2018)

Basil Moore I first met Basil in 2000 or 2001, which was quite late, since I've read his work as an undergraduate back in the late 1980s. I was Assistant Director of the Center for Economic Policy Analysis (CEPA, now the Schwartz Center) at the New  School, and we invited him for a talk, which was about his forthcoming (at that time) book Shaking the Invisible Hand: Complexity, Endogenous Money and Exogenous Interest Rates  which was published considerably later (my review here).Basil...

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Brian Romanchuk — Primer: What Limits Bank Lending?

The unfortunate fact that bank deposits are considered money has one side effect: our mysticism about money extends towards banking. The apparent ability of banks to "create money out of thin air" seems unfair, and this leads to questions about what limits their ability to lend. The answer is a lot simpler than one might suspect. For any other business (with the possible exception of the resource industry), output is largely constrained by their ability to find customers that they can sell...

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La macroeconomia dopo la moneta endogena (Wonkish)

Appena pubblicato sui Working papers di Siena Bofinger and Ries versus Borio and Disyatat: macroeconomics after endogenous money. A brief note. Sergio Cesaratto Abstract A paper by Peter Bofinger and Mathias Ries (2017a/b) strays from the recent rethinking in monetary analysis to criticise Summers’ “saving glut” explanation of the prevalence of low real interest rates. A similar critical perspective is held by Borio and Disyatat (e.g. 2011a/b, 2015), who are criticised, however, by...

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New Book: Advances In Endogenous Money Analysis

There’s a nice new book titled, Advances In Endogenous Money Analysis, edited by Louis-Philippe Rochon and Sergio Rossi.There’s a great chapter on Nicholas Kaldor’s views on money over the years by John E. King and another by Marc Lavoie titled, Assessing Some Structuralist Claims Through A CoherentStock–Flow Framework. John E. King also discusses the importance of fiscal policy in Kaldor’s work:Kaldor continued to insist on the importance of fiscal policy. The first point in his...

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