Dr. Kelton’s Graduate Macro Students’ Video Project

11 responses to “Dr. Kelton’s Graduate Macro Students’ Video Project

  1. Great collection of vids! It’s #MMTanswertofixthedebtBS.

  2. Whew, I feel a lot of solid energy coming from this video. Good positive aura. Still, there’s a lot of pressure in the world right now. Gotta rise above it. Harness in the good energy, block out the bad. Harness, energy, block, bad. Feel the flow, MMTers. It’s circular. It’s like a carousel. You get on the horse, it goes up, down, and around. Circular. Circle. With the music, the flow. All good things. Ya know what, Kevin Nealon can explain it better:
    [hulu id=24394]

  3. Good job. I would seriously lose the background music though. Distracting.

  4. Why do politicians lie about the deficits? Are they doing it on purpose or are they simply ignorant of the fact that the US is monetarily sovereign?

    Why do we continue to allow these lying/ignorant bastards to dominate the narrative on our fiscal situation?

  5. at 9:34 into the presentation – Sector Financial Balances as a % of GDP, 1952q1 to 2013q2

    There was a little sleight of hand in part of the discussion around the government always needing to be in the red so that others can be in surplus. The truth of the matter is that the government may need to run in the red if the money supply needs to be increased. In a growing economy, the money supply almost always needs to increase, so it seems like the argument I am making is only a quibble.

    However, when you skip over the truth to make your message less complicated, it always comes back to bite you. When your opponent points out the fallacy of your argument, you don’t want to have to backtrack, admit you weren’t being accurate, and only then make the correction I am suggesting.

    Is the four added words in the proviso, “in a growing economy”, too much to expect in order to keep the argument completely above board?

    If the Fed is now ineffectively shoving massive amounts of liquidity into the economy to try to stimulate it, might there come a time when the economy recovers that this excess liquidity must be slurped back out? I know the Fed say that they have a plan, so maybe it won’t require a few years of government surpluses to accomplish the task.

    Adding this to the discussion might prove to the doubters that you aren’t completely blind to other possible events that could happen.

    • What the fed does is to change composition of assets in the private sector. This is quite ineffective because total amount of assets do not change.

      And it is completely different thing from fiscal policy that treasury does. Fiscal policy does change total amount of assets in the private sector.

      • I see that I was careless in talking about the Fed and the Budget in the same rant. However, the point I was making about the sleight of hand is still valid. It is true that the budget deficit issue is not the same as the Fed injecting liquidity. However, it was Dr. Kelton who said that the government must run a deficit for others to run a surplus. That is why I equated running a deficit with injecting liquidity. So maybe there was more sleight of hand than I even realized?

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  7. Please, give me more of Warren telling his baby how to solve the debt crisis! Maybe we could even imitate the old talking baby Scott Trade (I think this was the sponsor?) television commercials?
    Seriously, this is well done guys and gals. Thanks.

  8. Scott Adams probably didn’t mean this as the start of a deep economic question, but this Dilbert cartoon: http://dilbert.com/2013-12-03/ (at least the first 2 frames) can provide a humorous segueway to answer the question of the origin of money — “The first money came (and continues to come) from the issuer!” Most people agree with frame one, but haven’t even thought to ask frame two and who that issuer might be.

    Excellent video. Thanks.

  9. Great video. Persuasive and accessible to a wide audience. Professor, give those students an “A.”
    Loved the Billy Bragg at the end.