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Tag Archives: Monetary Policy

To save the climate – don’t listen to mainstream economists

Ann Pettifor’s The Coming First World Debt Crisis (Pettifor 2006) was the first book to warn of the approaching 2007 Global Financial Crisis. More than decade after that crisis, its cause—excessive private debt, created primarily to finance asset bubbles rather than productive investment—is still with us, while we are entrapped in a pandemic crisis, and on the cusp of a climatic one. Figure 1: Private debt levels over the history of capitalism Looking forward to the next ten years, and given...

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The Fiscal Deficit, Modern Monetary Theory and Progressive Economic Policy

Modern Monetary Theory or MMT has crept in from the academic margins to become an influential doctrine in progressive policy circles in the United States. Both Elizabeth Warren and Bernie Sanders drew on the ideas of MMT to shape their ambitious public spending platforms. MMT has been cited as one way to fund a Green New Deal, in combination with progressive tax reform. It is safe to say that most Canadian progressives are not debating the finer points of monetary and...

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The Fiscal Deficit, Modern Monetary Theory and Progressive Economic Policy

Modern Monetary Theory or MMT has crept in from the academic margins to become an influential doctrine in progressive policy circles in the United States. Both Elizabeth Warren and Bernie Sanders drew on the ideas of MMT to shape their ambitious public spending platforms. MMT has been cited as one way to fund a Green New Deal, in combination with progressive tax reform. It is safe to say that most Canadian progressives are not debating the finer points of monetary and...

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The Reserve Bank’s Pandemic Predicament

by Lekha Chakraborty and Harikrishnan S As the Reserve Bank of India Governor Shri Shaktikanta Das puts it upfront, these are extraordinary times, and we need to respond with “whatever it takes” to deal with the pandemic. Over the past few days, our hope for systematically “flattening the curve” by containing the COVID-19 pandemic and moving to a quick V-shaped or U-shaped recovery is waning[i]. Evidence is increasingly pointing towards the situation worsening to a dual crisis — a...

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The Reserve Bank’s Pandemic Predicament

by Lekha Chakraborty and Harikrishnan S As the Reserve Bank of India Governor Shri Shaktikanta Das puts it upfront, these are extraordinary times, and we need to respond with “whatever it takes” to deal with the pandemic. Over the past few days, our hope for systematically “flattening the curve” by containing the COVID-19 pandemic and moving to a quick V-shaped or U-shaped recovery is waning[i]. Evidence is increasingly pointing towards the situation worsening to a dual crisis — a...

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Britain was not “nearly bust” in March

"Britain nearly went bust in March, says Bank of England", reads a headline in the Guardian. In similar vein, the Telegraph's Business section reports "UK finances were close to collapse, says Governor":Eh, what? The Governor of the Bank of England says the UK nearly turned into Venezuela? Well, that's what the Telegraph seems to think: The Bank of England was forced to save the Government from potential financial collapse as markets seized up at the height of the coronavirus crisis,...

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Britain was not “nearly bust” in March

"Britain nearly went bust in March, says Bank of England", reads a headline in the Guardian. In similar vein, the Telegraph's Business section reports "UK finances were close to collapse, says Governor":Eh, what? The Governor of the Bank of England says the UK nearly turned into Venezuela? Well, that's what the Telegraph seems to think: The Bank of England was forced to save the Government from potential financial collapse as markets seized up at the height of the coronavirus crisis,...

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Rebuild the ramshackle global financial system

The following appeared in Nature magazine on 17 June, 2020 Economic researchers neglect the role of financialization in global existential crises. Riddled with comorbidities, the current global monetary and financial set-up precipitates crises with increasing frequency. At first, these were on the fringes of the global economy; in 2007–09 they moved to its very core. Since 1971, national economies, and all our lives, have been shaped by this ‘system’,...

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Rebuild the ramshackle global financial system

The following appeared in Nature magazine on 17 June, 2020 Economic researchers neglect the role of financialization in global existential crises. Riddled with comorbidities, the current global monetary and financial set-up precipitates crises with increasing frequency. At first, these were on the fringes of the global economy; in 2007–09 they moved to its very core. Since 1971, national economies, and all our lives, have been shaped by this ‘system’, which can be described only as...

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Pandemic economics: the role of central banks and monetary policy

Below are the slides from my presentation at Beyond Covid on 12th June. The whole webinar can ve viewed here.The pandemic seems to me to resemble the "nuclear disaster" scenarios of my youth: hide in the bunker, then creep out when the immediate danger is over, only to find a world that is still dangerous and has fundamentally changed in unforeseeable ways. Rabbits hiding from a hawk is perhaps a kinder image, though hawks don't usually leave devastation in their wake. And I like rabbits. So...

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