Tag Archives: MMT

Although mainstream economics prides itself on being highly precise and mathematical, this is not apparent when looking at the discussion of fiscal policy. It is very easy to find appeals to intergenerational fairness when discussing fiscal policy. Such a term is essentially meaningless in technical terms; it is mainly used as a ploy to evoke images of doe-eyed grandchildren being robbed by nefarious politicians. This article explains why the concept is largely worthless as an analytical...

The British Labour Party is currently leading the Tories in the latest YouGov opinion polls (February 19-20, Tories 40 per cent (and declining), Labour 42 per cent (and rising). They should be further in front, given the disarray of the Conservatives as they try to negotiate within their own party something remotely acceptable about Brexit. When there is this degree of political capital available, in this case for the Labour Party, a party should use it to redefine policy agendas that have...

Everyone knows governments need to tax before they can spend. What Modern Monetary Theory presupposes is, maybe they don't. Surprisingly decent article on MMT considering the dismissive headline. Covers most of the bases.ViceThe Radical Left-Wing Theory That the Government Has Unlimited Money Tom Streithorstht Ralph Musgrave

Let’s go back to the future and create livable wage jobs again for every man or woman who needs one. There is a new economics (Modern Monetary Theory aka MMT) that has designed Job Guarantee (JG) proposals that are carefully crafted to complement the need for real, full employment when the private and public sector​s​ fail to meet the needs of our workforce. MMT economists understand that our capitalist economy must be organized for the benefit of everyone (i.e., Main Street communities,...

A new report from Bard College’s Levy Economics Institute concludes that this bold idea – cancelling all outstanding student debt – would help the entire economy and create more than a million jobs. To those who say we can’t afford to cancel this debt, the report poses a new and different question: Can we afford not to? Cancel and Grow Using widely-accepted economic tools, the report’s authors – Scott Fullwiler, Stephanie Kelton, Catherine Ruetschlin, and Marshall Steinbaum – found that...

Bill answers the main questions about MMT and a progressive agenda to address wealth inequality. There is no need for a currency issuer to tax to obtain the funds it issues itself. The reasons that a currency issuer should tax excessive wealth is political, in that wealth conveys political power. Neoliberalism differs from classical liberalism (laissez-faire) by harnessing government to promoting the interests of capital rather than reducing government involvement in the economy as...

Mentions MMT. See comments also. Mainly MacroDo Trump’s deficits matter?Simon Wren-Lewis | Professor of Economics, Oxford University ht Ralph Musgrave

Recently, a colleague emailed with the following set of questions: ‘a balance sheet approach to defending currencies. Do you know literature that explains in detail the globally interlocking balance sheets between central banks, commercial banks and what happens when a national government has to defend its currency? What is the role of national and foreign reserves and how do they travel these balance sheets in the process of trying to defend a currency? I came back to this question when...

The Modern Monetary Theory is described as an integration of endogenous money, state money, credit money, and functional finance theories. Despite departing from a faithful narration of what actually happens in the real world, the MMT arrives at a new world in which the government can spend as it pleases. Not only this and several other difficult-to-swallow claims, but also academic concepts such as vertical and horizontal components of money supply introduced along the way are what make...

Stephanie Kelton introduces Justin Santopietro, who is running for the Democratic nomination for Congress in the rural, Appalachian district of VA-09.Down with TyrannyGuest Post: Stephanie Kelton Introduces A New Candidate For Congress An Experienced MMTer Is Running For Congress In 2018 by Stephanie Kelton