Tag Archives: mmt

A Background to the Origination Of Soft Currency Economics aka Modern Monetary Theory

by Warren Mosler Cross posted from Soft Currency Economics.  Editorial changes 14 March 2013 12:01am New York Time. As you will read in Soft Currency Economics, in November of last year, I was invited to speak at a Government Debt … Continue reading

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Misplaced Faith in Quantitative Easing

by Peter Cooper, heteconomist Editor’s note: This was written October 2010, but is still timely. A major component of the policy response to the economic crisis in the United States, Japan and especially Britain has been ‘quantitative easing’. The policy … Continue reading

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Paying for Lunch – MMT Style

Dan Kervick, New Economic Perspectives A common criticism of Modern Monetary Theory is that it is a naïve doctrine of free lunches. The critics grant that a country like the United States, which issues its own freely floating fiat currency, … Continue reading

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Exchange Rate Policy and Full Employment

by Warren Mosler, Mosler Economics Editor’s note: This is the manuscript for a presentation made on either 03 December 1997 or 03 December 1999 (see discussion in comments) at a conference hosted by Prof. William Mitchell, University of Newcastle, New … Continue reading

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The Great Debate©: Who Saw it Coming? (Part 2)

by L. Randall Wray, New Economic Perspectives Editor’s note: This is a continuation of the discussion posted earlier, The Great Debate©:  Who Saw It Coming? A focal point of that discussion was Hyman Minsky who formulated theories about instability in … Continue reading

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Federal Reserve: Can We Run Out of Money?

Guest Author: Stephanie Kelton Federal Reserve Chairman Ben Bernanke gave his fourth lecture at George Washington University yesterday. Buried in the lecture, beginning at about 19:18 in the video (shown below), Bernanke explained where the Fed got the money to … Continue reading

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Abba Lerner: Functional Finance

Written by John Lounsbury Abba Lerner (1903-1982) was not considered a dominant figure in American economics for much of his career although he collaborated and exchanged ideas with many more famous economists of his time.  He studied under Friedrich Hayek … Continue reading

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The Great Debate©: The Job Guarantee Brouhaha

by Hugo Heden and John Lounsbury John Carney, a senior editor at CNBC.com, has been writing a series of articles about the job guarantee (JG) aspect of what is known as Modern Monetary Theory(MMT). The JG is also known as … Continue reading

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U.S. Facing Insolvency by Ignorant Choice

by Derryl Hermanutz In his book, “The 7 Deadly Innocent Frauds of Economic Policy”, modern money theory (MMT) advocate Warren Mosler distinguishes between three very different kinds of money systems, “Historically, there have been three categories of money: commodity, credit, … Continue reading

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Why Financing is not Saving: Fable of the Breads

by Dirk Ehnts I must admit that it took me some time to understand this:  financing is not saving. You may finance all sorts of things, and savings are not a necessary part of this story.  The reason why this … Continue reading

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Voters: Get Your Heads Straight on Money ASAP … Please!

by Art Patten, Symmetry Capital Management From Bloomberg: A Bloomberg National Poll, conducted June 17-20, found voters choosing jobs over the deficit or federal spending as their top concern by 42 percent to 30 percent. Yet 74 percent of Americans … Continue reading

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Coin Seignorage and Inflation

The one thing that naysayers, and even some supporters, instinctively claim, however, is that coin seigniorage would be inflationary or even hyperinflationary. But this is not true! Continue reading

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Aggregate Demand and Austerity

Both modeling and the historical record indicate that austerity in the midst of a balance sheet recession leads to increased deficits. The historical analogy frequently raised by Richard Koo, who argues that the attempt by the Japanese government in 1997 to reduce budget deficits in the midst of a balance-sheet recession resulted in larger deficits, not smaller ones. We may be already seeing the same thing in the UK, as deficits there are now growing in the aftermath of austerity measures undertaken late last year. Continue reading

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