The Great Debate©: Is Fed Policy Too Tight?

The following is a proposition by Scott Sumner (professor of economics at Bentley University) that the QE programs by the U.S. Federal Reserve and other central bank actions have actually been “highly contractionary” and a rebuttal by L. Randall Wray (professor of economics at the University of Missouri Kansas City).

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 South Wales, Australia at that university. Introduction The Post Keynesian group repeatedly distinguishes itself from …

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 economic systems.  This essay adds to the debate and comes from one who studied for …

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 “pay for” the assets it purchased as part of its Quantitative Easing (QE) policies. I …

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 at the London School of Economics, spent a short period of time at Cambridge when …