Tag Archives: Modern Monetary Theory

Blinder Leading the Blind

By Dan Kervick

The establishment’s debt and deficit hawks have taken flight once again, this time to launch a counterassault against Paul Krugman’s sensible and increasingly successful campaign to get people to stop clutching their pearls over the federal budget situation, and to focus attention on more pressing matters of high unemployment and economic stagnation.  Joe Scarborough, Ezra Klein and the Washington Post editorial board are among those springing into action on behalf of deficit worry, and against the dangerous movement of calmness and sobriety breaking out all over.  One thing that becomes more apparent as this debate unfolds is that the budget warriors frequently confuse broader public policy challenges that happen to have a budgetary component with narrower problems related to size of the budget deficit itself.  A recent Atlantic piece by Alan Blinder unfortunately contributes to that confusion.

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Ecuador Chooses Stimulus over Austerity

NEP’s William Black appeared on The Real News , February 17, 2013, discussing how Ecuador has been dealing with the recession, and some of the things we can learn from it. You can view the video below or if you wish to view the video as well as the transcript posted at TRNN, you can click this link.

 

What’s the Best Way to Stimulate the Economy?

NEP’s William Black is part NYTimes.com’s Room for Debate. You can view his questions that senators should be asking Jack Lew at his confirmation hearings as well as the subsequent comments and debate at NYTimes.com.

The State of the Economic Union

By Dan Kervick

On Tuesday night, President Obama will give the first State of the Union message of his second term.  Preliminary indications from Washington are that the President will attempt to shift some attention back to jobs and economic growth.  But similar White House moves to address jobs and the economy over the past four years have been half-hearted and politically feeble.  It is likely that the jobs message delivered by Obama will be overshadowed and weighed down by the endless and destructive partisan battles over our long-term budget position and Washington’s misguided plans for budget austerity and fiscal contraction.  Obama came into office extolling “the fierce urgency of now” – but Washington’s mystifying obsessions with the federal debt and impossible projections of future budget deficits have moved the beltway agenda from the fierce urgencies of 2013 to the unknowable contingencies of 2035.  The unemployed are trapped despairing and jobless here in 2013, choking on the spreadsheets of dueling beltway actuaries.

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Stephanie Kelton Virtually Speaking

NEP’s Stephanie Kelton appeared on Virtually Speaking with Jay Ackroyd February 7. You can listen with the player below or visit Virtually Speaking on Blogtalk Radio. The conversation begins with the platinum coin and the the nature of fiat currency.

Listen to internet radio with Jay Ackroyd on Blog Talk Radio

Austerity: the Political Struggle over Who Controls the Economy’s Liquidity

By Michael Hoexter

The austerity campaign, a favorite for the last four years of politicians and financial tycoons, remains a seemingly self-contradictory and baffling phenomenon for those who know that it goes against at least 80 years of economic wisdom regarding management of the economy.  The campaign draws on irrational strains and inconsistencies in our economic self-understanding to turn politicians against the welfare of society and the economy as a whole as well as against their own interests as political leaders.  Austerity appears to serve the perceived short-term interests of some sectors of the wealthy and the financial industry but the long-term interests of no one. 

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Yglesias mimics “Mankiw Morality” and bashes Bastiat

By William K. Black 
(Cross posted at Benzinga.com)

Roger Erickson brought to my attention a column by Matthew Yglesias that relates to the ethical issues I was discussing in my column yesterday about Yglesias’ ode to GHB (Geithner, Holder, and Breuer’s doctrine of immunity for the largest banks).  (In deference to Yves’ endocrinologist, I am renaming it GBH (Brit-speak for “grievous bodily harm”).

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Fantasy Football, Platinum Futures and the Future of Platinum

By Dale Pierce

For the present, all MMT policy advocacy is fantasy football. Everything we talk about is real, and everything we help to prove or explain or demonstrate or clarify is important – and will be much, much more important in the future. And, of course, there’s nothing wrong with fantasy football – it’s a useful exercise for learning about and interpreting the game. Similarly, the extension of theoretical MMT principles to practical problem-solving is a useful – even a vital – exercise. But nothing we advocate today is really going to happen today – at least not in America. I still keep hoping that some high-up political figure in Latin America, or Latvia, or maybe Iceland will come out with an up-front endorsement, along with an explicitly MMT-informed political platform. And I think that’s a worthwhile goal for us as well – provided that we understand just what it is that we are doing.

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NEP’s Marshall Auerback on BNN

Marshall appeared on Business News Network on January 29th. There are 2 separate clips and are listed below. In the second clip, Marshall appears beginning at 1:11, after market updates. Click a link in order to view.

http://watch.bnn.ca/#clip854050

http://watch.bnn.ca/#clip854058 (Marshall appears beginning at 1:11)

A Coin for Reading

By J. D. Alt

In a recent essay I suggested that MMT might be applied incrementally to put people to work creating certain very special public goods. I suggested that the social norms which prevent people from “seeing” the logic of issuing fiat money to pay for sovereign spending might be placated by this incremental approach—especially if the public goods in question were something overwhelmingly and incontrovertibly beneficial to our country as a whole. This suggestion was strongly criticized by Joe Firestone. So far as I can tell, the essence of his objection is that a proposal to mint a smaller sovereign coin—to be used to achieve some specific goal—would more likely be repudiated by the status quo than a proposal to mint a very large one with the express purpose of overturning the status quo itself.

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