Tag Archives: MMT

Pavlina Tcherneva recently participated in a hearing before a parliamentary group (La France insoumise) of France’s National Assembly on the subject of the Green New Deal and the job guarantee (the intro is in French; Tcherneva’s testimony is in English):Multiplier EffectTcherneva on the Green New Deal and Job Guarantee in France Michael Stevens

Important. Another must-read to stay abreast of developments in MMT and its promotion.I would like to comment specifically on this paragraph. I am thinking here of the way in which mainstream economics characterises humanity as rational, maximising units who pursue individual self-interest as their sole goal. Those assumptions are foreign to the way the other social sciences construct human decision-making. This is key in understanding the issues. Conventional economists assume that...

One of my presentations are the January Sustainability Conference in Adelaide focused on the basics of Modern Monetary Theory (MMT). I was asked by the organisers to provide some clarity on the basics of MMT and to demarcate where MMT starts and finishes. I started the first of two talks I gave at that conference by stating that MMT was macroeconomics. It is within that discipline. It is not within the discipline of law, sociology, psychology, cultural and media studies etc. Macro is macro....

This is post really as much about the growing impact of MMT as it is central banking. Bill cites the recent Fed admission that it can set the yield curve if it chooses as evidence of that. There's a lot packed into this post. Bill Mitchell – billy blogGovernments can always control yields if they desireBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

A debate is set by the way it is framed, along with the parties acceptance or rejection of key assumptions of the framework. These initial conditions determine the course of the debate and the likely winner. Accepting the assumptions of conventional political economy as the application of macroeconomics to policy issues all but guarantees defeat in policy debates since it is an uphill fight against entrenched forces to which one has needlessly and foolishly ceded the advantage. Bill...

Regular readers will know that I have been following the path of the British economy post-Referendum in 2016 to see whether the doomsday that the Remainers predicted was likely. It became colloquially known as ‘Project Fear’ as mainstream economists, so-called progressive economists who had their snout in the Labour Party as advisors (and we know where that took the Party), institutions like the Treasury and the Bank of England, all pumped out a sequence of terrible predictions about what...

This blog is based on the testimony I provided to the US House of Representatives. My written statement will be published in the Congressional Record (a version is also at the Levy Economics Institute: http://www.levyinstitute.org/publications/statement-of-senior-scholar-l-randall-wray-to-the-house-budget-committee. The full statement was co-authored with Yeva Nersisyan.I will argue that the Federal Government’s deficit and debt are not so scary as we are led to believe.Neither the deficit...

The Job Guarantee is the most natural implementation of the concept of having the central government act as a price setter. By making an open bid for labour at a fixed price, an effective minimum wage is created in the economy, and it will eliminate almost all involuntary unemployment. This discussion will not cover the tricky question of implementation details, but will instead discuss how this fits in with the Monetary Monopoly model.... Bond EconomicsJob Guarantee as a Policy...

Tax the rich! That has become a misguided progressive Left mantra. The intention is to maintain public services including health, education and income support which are core issues for progressives. But then the neoliberal indoctrination that has infested this group intervenes. They seem to think the government needs the money of those with lots of it before it can provide essential and progressive public services and fight the climate emergency. They support political parties that set as...

By L. Randall Wray This blog is based on the testimony I provided to the US House of Representatives. My written statement will be published in the Congressional Record (a version is also at the Levy Economics Institute: http://www.levyinstitute.org/publications/statement-of-senior-scholar-l-randall-wray-to-the-house-budget-committee. The full statement was co-authored with Yeva Nersisyan. I will argue that the Federal Government’s deficit and debt are not so scary as we are led to...