Sorry, I’ve been very busy in recent weeks, finishing up a book on Minsky and revising my Modern Money Primer for a second edition (more on both of those projects later).
Meanwhile, Lola Books is gearing up to release the Primer in Spanish next week. I’ll be in Madrid for the launch and for a series of meetings. I’ll give two presentations that are open to the public. Details are below. Hope to see our Spanish friends there!
For our Spanish speaking followers, my Modern Money Primer has just been released in Spanish and is available.
Posted in L. Randall Wray
Tagged español, MMT, Modern Monetary Theory, modern money primer
Complications and private preferences. There are often two objections to the claim that government spending effectively takes place by simultaneously crediting the recipient’s bank account as well as the bank’s reserves: a) it must be more complicated than this; and b) what if the private sector’s spending and portfolio preferences do not match the government’s budget outcome?
Read More…
Comments Off on Today’s Modern Money Primer
Posted in L. Randall Wray, modern money primer, Uncategorized
Tagged L. Randall Wray, modern money primer
Check out the latest in the Modern Money Primer series: The Effect of Sovereign Budget Deficits on Saving, Reserves and Interest Rates.
Comments Off on Today’s Modern Money Primer
Posted in L. Randall Wray, Modern Monetary Theory, modern money primer, Uncategorized
Tagged L. Randall Wray, Modern Monetary Theory, modern money primer
By L. Randall Wray
This week we will begin to examine our next topic: government spending, taxing, interest rate setting, and bond issue. We will examine fiscal and monetary policy formation by a government that issues its own currency. We will bear in mind that the exchange rate regime chosen does have implications for the operation of domestic policy. We will distinguish between operational procedures and constraints that apply to all currency-issuing governments and those that apply only to governments that allow their currency to float. Over the previous 17 (!) weeks we have touched on much of this, but now it is time to get down to “brass tacks” to look at some of the nitty-gritty.
Read More
Comments Off on Today’s Modern Money Primer
Posted in L. Randall Wray, MMT, Modern Monetary Theory, modern money primer, Uncategorized
Tagged L. Randall Wray, MMT, Modern Monetary Theory, modern money primer
Last week we received a well-thought-out query, which is pasted below in its entirety (although I removed the author’s name to respect privacy). I think the author raises points that are sufficiently important that we should take another unplanned diversion this week. This is the great thing about running the Primer this way as I can see where I’ve failed to adequately explain something. I had thought the distinction between real and financial (nominal) was clear—but obviously it was not.
At this point you might want to skip down to the bottom of this post to read the query. I will summarize the main point later, but I expect that many of you would agree with the author—so go ahead and read it first. Then we’ll get to the response.
Ok, let me try to explain this as clearly as possible.
Comments Off on Today’s Modern Money Primer
Posted in L. Randall Wray, Modern Monetary Theory, modern money primer, Uncategorized
Tagged L. Randall Wray, Modern Monetary Theory, modern money primer
In the next series of blogs we will look in more detail at fiscal and monetary operations of a nation with a sovereign currency. Before we do that, let us briefly examine the case of the Euro. There is no way the system as designed could possibly survive a significant financial crisis. And a crisis began in 2007. Due to flaws in the set-up, it was obvious (at least to those who adopted MMT) that the original arrangement was not sustainable. Read more…
Comments Off on Today’s Modern Money Primer
Posted in L. Randall Wray, Modern Monetary Theory, modern money primer, Uncategorized
Tagged euro, L. Randall Wray, Modern Monetary Theory, modern money primer
Click images to view details
