Search Results for: external constraint


By L. Randall Wray To Fix or To Float, that is the question. MMT argues that a sovereign government that issues its own “nonconvertible” currency cannot become insolvent in terms of its own currency. It cannot be forced into involuntary … Continue reading

Minsky Meets Brazil Part III

By Felipe Rezende This part of the series (see Part I and II, here and here) will focus on macroeconomic and microeconomic aspects to financial fragility and provision for liquidity. Minsky’s framework not only sheds light on how to detect … Continue reading

Minsky Meets Brazil

By Felipe Rezende Part I This series will discuss at length the underlying forces behind Brazil’s current crisis. A consensus has emerged in Brazil (and elsewhere) blaming Rousseff’s “new economic matrix” policies for the country’s worst crisis since the Great … Continue reading

Did Ms. Rousseff’s epiphany come too late?

By Felipe Rezende If you’ve been tracking the news on Brazil’s presidential election, you already knew that incumbent Rousseff will face Neves in a runoff election for Brazil’s presidency on October 26th. The tight election reflects the perception of a … Continue reading

Mark Halperin Was Right

By Marshall Auerback It may not have been the most felicitous choice of phrase, but Mark Halperin’s characterization of Barack Obama was not far off the mark, even if he did get suspended for it.  The President is a dick, at … Continue reading

“My alternative proposal on trade with China”

By Warren Mosler* We can have BOTH low priced imports AND good jobs for all Americans Attorney General Richard Blumenthal has urged US Treasury Secretary Geithner to take legal action to force China to let its currency appreciate. As stated … Continue reading

A Memo From MMT’s Legal Department

By Rohan Grey and Raúl Carrillo Orthodox economists are often inclined to think of law as an external force that ‘intervenes’ to regulate otherwise naturally occurring economic phenomena. In contrast, Modern Monetary Theory and its antecedent intellectual traditions have long … Continue reading

Myron Ebell, Trump’s Nihilistic EPA Selection, Soft-peddled by the New York Times

Michael Hoexter, Ph.D. The US press has generally played a dismal role in warning people of the imminent dangers of climate breakdown and upcoming thresholds beyond which humanity may not survive as an organized species or a species at all. … Continue reading

Minsky Meets Brazil Part IV

By Felipe Rezende Part IV This last part of the series (see Part I, II, and III here, here and here) will focus on the Brazilian response to the crisis. What Should Brazil do? The Brazilian current crisis fit with … Continue reading

How Bernie’s Economic Policies Fit into Economic Theory

By William K. Black April 19, 2016     Bloomington, MN The journalist Adam Davidson has written an interesting article about economics and Bernie Sanders.  As an economic adviser to Bernie I found his take on Keynesian and institutional economics of considerable … Continue reading