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Tag Archives: MMT

MMT And Policy Variables — Brian Romanchuk

One of the distinctive features of Modern Monetary Theory (MMT) is the choice of variables used by policymakers to guide he economy. The choices are unconventional: interest rate policy is downplayed or even eliminated, while the requisition price used by the fiscal arm of government is emphasised. This can be seen in the structure of the Monetary Monopoly model (link).... Bond Economics MMT And Policy VariablesBrian Romanchuk

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Politically Motivated Attempts to Own or Disown China as “Capitalist” — Peter Cooper

There are often attempts in the west to depict China as capitalist rather than socialist. After decades of China going from strength to strength on macroeconomic criteria – and in view of its undeniable achievement in reducing poverty at a rate unmatched in recorded human history – some on the right wish to deny that this could have been accomplished through socialism and so instead claim China to be capitalist. At the same time, there are those on the left who wish to distance notions of...

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Bill Mitchell — Racial prejudice in Britain rises with unemployment

When I was a relatively junior academic, one of the things I was interested in was how labour market prejudice is influenced by the state of the economic cycle. This was a period when Australia was undergoing a deep recession (early 1990s) and it was clear that hostility to immigrants had risen during this period. I was interested to see whether this was related. The interest goes back to my postgraduate days when I was studying labour economics and we considered labour market...

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Bill Mitchell – The German government celebrates its record surplus while infrastructure collapses

Wednesday blog post – so only a few snippets including some discussion about Germany’s latest extreme outcome – a record fiscal surplus, which the Ministry of Finance is claiming is responsible. Judged by the fact that the economy has ground to a halt and there is a massive infrastructure deficit in the country as a result of a systematic starving of capital expenditure by the government, one has to ask: are they joking! The surplus was, in part, the result of the German government not...

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The Monetary Monopoly Model — Brian Romanchuk

What I refer to as the Monetary Monopoly Model is the simplest possible mathematical model that captures basic concepts from Modern Monetary Theory (MMT). Despite its simplicity, it gives a good feeling of how a sovereign could pin down the value of a brand new currency (relative to existing currencies, or the value of real goods or services). However, the model makes almost no assumptions about private sector behaviour, and such assumptions would be needed to simulate an existing...

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Michael Roberts Blog: blogging from a marxist economist — Minsky and socialism

Minsky’s journey from socialism to stability for capitalist profitability comes about because he and the post-Keynesians deny and/or ignore Marx’s law of value, just as the ‘market socialists’, Lange and Lerner, did. The post-Keynesians and MMTers deny/ignore that profit comes from surplus value extracted by exploitation in the capitalist production process and it is this that is the driving force for investment and employment. They ignore the origin and role of profit, except as a residual...

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MMT Critics And Banks — Brian Romanchuk

As seen in some comments on my recent articles, critics of Modern Monetary Theory (MMT) often complain about MMT's treatment of banks. I am largely mystified by these criticisms, as they obviously miss the point. Very simply, the existence of banking system, and the fact that bank deposits to be considered to be part of monetary aggregates, is well understood within the MMT literature. The only real debate is about the implications of private banking. To what extent the banking system...

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Bill Mitchell – Australia’s bushfire dystopia – another entry for the neoliberal report card

I decided that I would run the CFA Franc series in three consecutive parts to maintain continuity and allow me to edit the final manuscript which Pluto Press will use to finalise the book by Fanny Pigeaud and Ndongo Samba Sylla. That meant that my usual Wednesday snippets sort of blog post didn’t happen this week. So, given that I have to travel for several hours today, Thursday becomes Wednesday and I just want to write a few comments about the current crisis in Australia (from the...

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