Tag Archives: MMT

Ends with a political rant, but the part about "taxpayer money" being public money in reality is correct.SplinterThe Dangerous Myth of 'Taxpayer Money'Raúl Carrillo, practicing attorney and a director of The Modern Money Network and Jesse Myerson, an Indiana-based community organizer with Hoosier Action

There is now a great deal of discussion of modern monetary theory going on, precisely because it appears that the UK government (and others around the world) are now behaving in the way that it suggests is, and has always been, possible. What MMT says, as far as I am concerned, is as follows.... Richard Murphy has a slightly different understanding of MMT than the MMT economists, but he is essentially correct. The glaring difference is his position on the non-necessity of a job guarantee....

This post continues my thinking and analysis of the issues relating to the design of a fiscal intervention by the Australian government to ameliorate the damaging consequences of the coronavirus dislocation. Today, I delve a little bit back in history to provide some perspective on the current fiscal considerations. Further, I consider some of the problems already emerging in the policy response. And finally, I consider the lessons of history provide an important guide to the sort of...

Nathan Tankus is a go-to guy on the institutional side of MMT. Following Scott Fullwiler, I also highly recommended subscribing to his new blog if you are into the nitty gritty and don't want to miss anything since I will only be linking it selectively. Nathan offers a free and a premium service. Like MMT legal scholar Rohan Grey, Nathan is an up-and-comer and is already becoming a star. The MMT bench is broadening and deepening. Please support Nathan if you are interested and able. Here is...

Hidden in last Thursday’s announcement from the Bank of England that it intends to buy another £200bn-worth of mostly government bonds was this line:The MPC will keep under review the case for participating in the primary market.It might sound like dull techno-speak, but the mere possibility of the Old Lady of Threadneedle Street buying bonds directly from the government (i.e., in the primary market) is a big deal. Since gaining independence, central banks have liked to see themselves as...

The Coronavirus Crisis has caused economic havoc. In this article, Warren Mosler and Dirk Ehnts discuss policy proposals that are informed by Modern Monetary Theory (MMT). Brave New EuropeDirk Ehnts, Warren Mosler – A Euro Zone Proposal for Fighting the Economic Consequences of the Coronavirus CrisisWarren's draft proposal for the US from his Twitter feed:

Peter Bofinger argues MMT provides intellectual justification for a ‘whatever it takes’ fiscal response to potentially the biggest global postwar economic challenge.... Social EuropeCoronavirus crisis: now is the hour of Modern Monetary TheoryPeter Bofinger | professor of economics at Würzburg University and a former member of the German Council of Economic Experts

Rep. Rashida Tlaib has proposed sending everyone in the United States $2,000 immediately and then $1,000 per month to counter the economic fallout of the coronavirus pandemic.The Michigan Democrat's plan would be financed by having the Federal Reserve create new money on behalf of the Treasury. To skirt the federal debt limit, the U.S. Mint would create two $1 trillion coins, and the Treasury would deposit them in its account at the Fed. Tlaib, a member of the small group of left-wing...

The US government should pull out all the stops in mitigating the economic fallout from COVID-19, not just by disbursing cash to all households, but also by implementing a federal job guarantee and many other long-overdue policies. After all, for a self-financing government, money is no object. Project SyndicateWhat Would Roosevelt Do? Pavlina Tcherneva | Assistant Professor of Economics at Bard College, Research Scholar at The Levy Economics Institute, and Senior Research Associate at the...

In some earlier posts, a job guarantee is added to an otherwise condensed income-expenditure model. This enables comparisons of steady states under different scenarios akin to the typical exercises conducted in introductory macroeconomics courses. What follows is a summary of the model, bringing together aspects that are dealt with in greater depth – but disparately – elsewhere on the blog, along with brief indications of how the model can be extended to include simple dynamics and short-run...