The money multiplier — neat, plausible, and utterly wrong The mainstream textbook concept of money multiplier assumes that banks automatically expand the credit money supply to a multiple of their aggregate reserves.  If the required currency-deposit reserve ratio is 5%, the money supply should be about twenty times larger than the aggregate reserves of banks.  In this way, the money multiplier concept assumes that the central bank controls the money supply...

  Sulla riforma del Patto di stabilità: dal Fatto quotidiano 11 dicembre 2023 Sergio Cesaratto*Le  trattative europee sulla riforma del Patto di stabilità non sembrano essere giunte a un compromesso. Le proposte della Commissione già da tempo avanzate sarebbero più flessibili in quanto i sentieri di rientro da debiti e deficit pubblici “eccessivi” sarebbero contrattati dai singoli Stati al fine di modularli a seconda delle situazioni loro specifiche. La Germania ha però indurito la...

 Intervista a Il sussidiario 12 dicembre 2023 (a cura di Lorenzo Torrisi)RIFORMA PATTO DI STABILITÀ/ “La Germania vuole meno flessibilità per non cambiare l’Europa”La posizione tedesca sulla riforma del Patto di stabilità si sta facendo più rigida. All'Italia servirebbe un impegno per l'azzeramento degli spread Un accordo sulla riforma del Patto di stabilità non è ancora stato raggiunto, ma dopo Eurogruppo ed Ecofin si è parlato di “passi avanti”. Cosa ne pensa? Un passo avanti e...

Let’s be clear from the outset: the edifying investigation published by Le Monde into the intrusive and ubiquitous procedures undergone by thousands of beneficiaries of the Caisse d’Allocation Familiales (CAF), France’s welfare agency, poses fundamental issues for the future of social security and public services, in France, Europe and the rest of the world. By examining thousands of lines of unduly concealed code, meeting vulnerable people and single parents unjustly hounded for imaginary...

One day. Someday. Eventually. Useless information.

Machinery Fails to Boost Productivity!

Blog Levelling down This government's levelling-up project has failed: households are down £1300 a year since 2015. By Dominic Caddick 11 December 2023 The UK has some of the highest inequality between different regions in the OECD. Successive...

My latest Blogstack It’s now just over 18 months since the 2022 election, so we are halfway through the the Albanese government’s term. At this point, it looks highly unlikely that the government will be returned with an outright majority, whenever the next election is held. So, it’s worth thinking about the government’s strategy, why it has apparently failed and whether it ever had a chance of success.Even before the 2019 election Albanese was positioning himself to challenge...

Scenes from the leading sectors of the November jobs report: why I sounded a note of caution  – by New Deal democrat I seem to have been something of a negative outlier with respect to last Friday’s jobs report. Not because I was downbeat – although I said there were “warning signs of weakness,” but almost all the other commentary I have seen was upbeat.So today let’s take a look at the leading sectors in the jobs report, to show why I sounded...

Open Threads are created for people to have conversations which may not fit in with topical posts . . . a comment which may be off topic. I usually offer up one topic to start a conversation. “Simply put, this small inholding, known as the “Kelly Parcel,” (Utah) should never be privatized. It is one of the most awe-inspiring and important pieces of open space remaining in America. Within Grand Teton National Park, its borders include the...