Category Archives: L. Randall Wray

Progressives Don’t Let Friends Vote Neocon

By L. Randall Wray

The drumbeat is quickening as Hillary’s surrogates insist that Bernie’s supporters fall in line. Bernie’s chances are said to be hopeless. Continuing to run only plays into the hands of truly despicable Republicans.

And forget about trying to pressure the Democratic Party’s establishment to let Bernie play a role in formulating the convention’s platform. That also would just play into the hands of the Republicans.

Time to unite behind Hillary, and let her move further to the right. No more talk of revolution, of trillions of dollars of new spending, of significant increases to the minimum wage. Let’s talk about Hillary’s issues: regime change abroad, downsizing dreams at home, and protecting Wall Street from the pitchforks.

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CAN BERNIE DO IT? The View of a Non-Establishment Economist

By L. Randall Wray

Bernie Sanders has an ambitious agenda. Too ambitious, insist his critics (including, especially, surrogates of Hillary Clinton). He would break up the big banks, reverse the redistribution of income and wealth to the top (that accelerated under the triple whammy of the Bush-Clinton-Bush administrations), restore and improve our nation’s infrastructure, and provide employment and better wages at the bottom. The critics proclaim that his programs cannot “pay for themselves”.

Using conventional macro models, Professor Gerald Friedman at UMass showed that they would. He was then attacked for using the conventional models that all conventional economists use. Apparently, these models are fine when they support austerity, but are out-of-bounds for use when they support progressive policy. Adam Davidson (of NPR’s “Planet Money”) has noted that in spite of the empirical results, even Friedman admits that perhaps only 4% of economists believe that Bernie’s programs can pay for themselves.

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Why Minsky Matters Events

This weekend: March 11th – 15th 2016, there are events taking place at the Village East Cinemas in New York including a book signing by Randy Wray on the 15th as well as screening of the movie. You can get all the details and list of guest appearances from Village East Cinema’s website here. Flyer for the book signing is after the jump.

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DEBT-FREE MONEY PART 4: AMERICAN COLONIAL CURRENCY

By L. Randall Wray

In Part Three I argued that the government issues currency as its liability and imposes tax liabilities on its subjects/citizens that can be paid in that currency. When taxes are paid, both the government and its taxpayers are “redeemed”. I cited Innes’s argument that the universal law of credit is that the issuer of a debt must take it back. This is the fundamental notion behind redemption of debts.

To be sure, debt is much older than money. No human has ever escaped debt. At birth, you are indebted to your parents, your kin, and your gods. You spend your lifetime incurring new debts and repaying old debts and accumulating credits that are the debts of others. If you earn enough credits, you join the Redeemer and make it to the Promised Land after death; if you don’t you join Satan—the original tax collector–in hell.

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THE VALUE OF REDEMPTION: DEBT-FREE MONEY PART 3

Sorry that it has taken me a while to get back to my multi-part series on debt-free money. This is the third part of the current series, although I had previously written several other blogs on the related topics of debt-free money, positive money, and 100% money. See links at the bottom.

This post will focus on the concept of “redemption” as the most fundamental requirement of indebtedness. This seems to confuse readers. For example, Eric Lonergan calls this a “fantastic linguistic contortion”, a “pure semantic confusion”, a “hidden definition slipped in between dashes”.

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Time to Jail the Bankers and Take Back Control over Money

Randy Wray and Bill Black appear on “Clearing the Fog.” You can listen to the podcast here. Bill, of the newly formed Bank Whistleblowers United, speaks about the plan they have outlined to instill the rule of law on Wall Street and end fraud with the hope of mitigating the effects of the next financial crisis. Randy, an expert in financial instability and macroeconomics, speaks about alternatives to the current financial system that would bring greater stability.

Reviews of Why Minsky Matters

Below are links to a couple of reviews of Randy Wray’s latest book – Why Minsky Matters: An introduction to the work of a maverick economist.

What Would Minsky Do Now? A review by Laurence B. Siegel at ValueWalk

A review by William J. Bernstein for CFA Pubs.

Why Minsky Matters: An Introduction to the Work of a Maverick Economist

Victoria Bateman has a review of Randall Wray’s new book “Why Minsky Matters: An Introduction to the Work of a Maverick Economist” over at Times Higher Education. You can read the review here.

DEBT-FREE MONEY AND BANANA REPUBLICS, PART TWO

By L. Randall Wray

My previous blog sparked a lot of discussion, especially over at Naked Capitalism. I do pity Yves Smith! There’s enough nonsense in the commentary to populate a large nation.

As I have argued, it is very hard to figure out what the debt-free money folks want as they are confused on the accounting, vague on the terminology, and rarely provide details on their proposal. However, a reader has directed me to a fine published article that has mostly got the accounting right, lays out a detailed proposal, and contrasts the proposal against alternatives.

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DEBT-FREE MONEY AND BANANA REPUBLICS

By L. Randall Wray

Some time ago, I labeled the “debt-free money” campaign a non sequitur in search of a policy. (See here.) However, this non sequitur refuses to die. I went on to joke that if they want a debt-free money, they ought to propose that government issue bananas as currency.

I frequently am asked to do interviews and I almost always accept them. However, when I was asked last week to participate in a radio show devoted to debt-free money, I struggled mightily to get out of it. As you’ll see, the program’s producer took my idea of banana republics and ran with it. I thought readers might get a kick out of this exchange (the producer’s emails are in italics, my responses are in bold). After the exchange, I’ll summarize my objections to the notion of debt-free money.

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