Understanding the Permanent Floor—An Important Inconsistency in Neoclassical Monetary Economics

by Scott Fullwiler, New Economic Perspectives I’ve written numerous times already about how a deficit “financed” by bonds vs. “money” doesn’t matter in terms of inflationary effect.  Notwithstanding my views there (which are not discussed in this post), the point of this post will be to explore the neoclassical paradigm on this matter, since this …

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 support an amendment to balance the federal budget, according to a CNN poll conducted July …

$13 Trillion Cover-up

In the case of bailing out Wall Street – and thereby the wealthiest 1% of Americans – while saying there is no money for Social Security, Medicare or long-term public social spending and infrastructure investment, the beneficiaries are obvious. So are the losers.

Inequality, Leverage and Crises

Guest Authors: Michael Kumhof, International Monetary Fund and Romain Ranciere, Paris School of Economics and International Monetary Fund.  Contact information available here. Authors’ notes:  The views expressed in this paper are those of the authors and do not necessarily represent those of the IMF or IMF policy. We thank George Akerlof, Kemal Dervis, Douglas Laxton …