Daily Archives: January 3, 2013

Functional Finance and the Debt Ratio—Part V

By Scott Fullwiler

[Part 1] [Part 2] [Part 3] [Part 4] [...]

This five part series will explore at length (warning!) and in detail (another warning—wonk alert!) the MMT perspective on the debt ratio and fiscal sustainability.  While the approach suggests a macroeconomic policy mix and strategies for both fiscal and monetary policies that most neoclassical economists currently believe are unsustainable, ultimately the MMT preference for a significant role for fiscal policy in macroeconomic stabilization is shown to be consistent with traditional neoclassical views on fiscal sustainability.

This fifth and final (!) part applies functional finance to CBO’s projections of the government’s long-term budget outlook and then offers concluding remarks for the entire series. Continue reading

Catch Randy Wray Discussing His Modern Money Theory Book on FDLSalon

Firedoglake is hosting a book salon with Randy Wray discussing his new book Modern Money Theory: A Primer on Macroeconomics for Sovereign Monetary Systems.  NEP’s William K. Black will be the host for the salon.

When: Saturday, January 5, 2013 at 2:00 p.m. pacific /5:00 eastern

Where: fdlbooksalon.com

 

The Washington Post’s tries again to create a moral panic sufficient to push the Grand Betrayal

By William K. Black

The Washington Post’s mission has been to create a “moral panic” sufficient to cause the Obama administration to overcome the objections of Senate Democrats and adopt the “Grand Bargain” (sic).  The deal would actually constitute the Grand Betrayal.  The betrayal of Democratic Party principles and promises would inflict a recession through massive austerity via large cuts to the safety net and social programs and modest/moderate increases in revenues. Continue reading

The President’s Leverage: He Can Go Platinum

By Joe Firestone

Well, that’s over. The President had a chance to go “over the cliff,” bargain hard with the Republicans, get more of what he said he wanted at the price of perhaps some more days of crisis with extreme pressure building on the Republican caucus, and he blinked. I don’t much care that he blinked on tax rates for the top 2% and on inheritance taxes, because tax rate increases for purposes of deficit reduction simply aren’t needed for getting deficit spending needed to create jobs, as the rest of this post will show. Here’s what I care about: Continue reading