Lars comments on a quote from Stephanie Kelton's The Deficit Myth showing the loanable funds theory being inconsistent with stock-flow accounting.Lars P. Syll’s BlogMMT — debunking the deficit Lars P. Syll | Professor, Malmo University

 "I have invited an economist that was active in the dollarization of Ecuador to illustrate the wonders of the process." A paper with Santiago Graña on dollarization in Argentina published in the PSL Quarterly Review. From the abstract:Currency substitution defined as the use of foreign currency in the domestic economy is a relatively common phenomenon in developing countries. While mainstream economics has analyzed it in some detail, the same is not the case in heterodox economics. This...

En statsbudget för Sveriges bästa En statsbudget i balans optimerar inte det reala resursutnyttjandet i ekonomin. Statsbudgeten och dess ramverk ska i stället verka för Sveriges bästa, så att tågen kan rulla och sjuka får vård, skriver Erik Arnell, utredare, Johannes Borgström lektor och docent vid Uppsala universitet och Peo Hansen, professor i statsvetenskap vid Linköpings universitet. Det gläder oss att Jesper Hansson understryker vikten av att statens...

MMT — debunking the deficit myth We have already shown that deficit spending increases our collective savings. But what happens if Uncle Sam borrows when he runs a deficit? Is that wht eats up savings and forces interest rates higher? The answer is no. The financial crowding-out story asks us to imagine that there’s a fixed supply of savings from which anyone can attempt to borrow … MMT rejects the loanable funds story, which is rooted in the idea that...

 Pubblichiamo articolo su Menabò in un numero con altri interventi sul Rapporto Draghi.Il Rapporto Draghi fra mercantilismo benevolo e mercantilismo ostile Sergio Cesaratto richiama l’attenzione sui tratti neo-mercantilisti del Rapporto Draghi e ritiene che in essi si annidi una critica implicita all'impianto neoliberista che ha ispirato la governance europea. Cesaratto sostiene anche che il 'nazionalismo europeo' che traspare dal Rapporto non sembra avere sempre accenti...

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Another Monday Message Board. Post comments on any topic. Civil discussion and no coarse language please. Side discussions and idees fixes to the sandpits, please. I’m now using Substack as a blogging platform, and for my monthly email newsletter. For the moment, I’ll post both at this blog and on Substack. You can also follow me on Mastodon here. Share this:Like Loading...

Not much happening regarding MMT these days.Herer is an anecdotal report on Russian banking. And, yes, you read that right. You get 24% not the bank.Doctorow is an American residing in Brussels who spends a good deal of time in Russia. His wife is Russian and he is fluent in Russian. A "Russianist," he has a a PhD in history (Harvard) and is a retired business person. His reporting does not conform to the narrative.Gilbert Doctorow—International relations, Russian affairs 24 per cent annual...

Daniel Waldenströms rappakalja om ojämlikheten Medan Piketty ser det ekonomiska systemet som en ojämlikhetsskapande faktor ser Waldenström marknaden som lösningen … Piketty och Waldenström är eniga om politikens, demokratins och utbildningens viktiga roll för den utveckling som skett mot ökad jämlikhet. Den stora skillnaden ser vi i inställningen till presenterade fakta. Waldenström säger att Pikettys analys är ”bitvis ideologisk”, men jag kan inte finna...

Introduction< The 2024 Sveriges Riksbank Prize for Economic Sciences has been awarded to Daron Acemoglu, Simon Johnson and James Robinson for work on the influence of institutions on long-term economic progress and growth. Much has been written about this, for instance by ´Pseudoerasmus´ here and by Radford here. In this article, an ´in-depth´ analysis of a part of the work leading to the the prize, an analysis of the long-term impact of the Dissolution of the English monasteries...