Another otherwise interesting Planet Money podcast. But with the complete and total belief in the falsehood that interest rate manipulation does what the mainstream thinks it does, when it clearly does not (and never has). "Happy Fed Independence Day (Update)" https://www.npr.org/2021/03/01/972618276/happy-fed-independence-day-update Everything everyone mentions about the effects of manipulating the base interest rate is incorrect. … Continue reading Again: Good “Mainstream” Econ Podcasts still get basics wrong, frustrating
I have been interested in better economics for years, including MMT.There have been a number of sea changes in recent years. Starting sometime around 2019 came the flurry of high profile criticisms of MMT – always a sign that you are winning. Then of course the well-deserved popular success of Stephanie Kelton's “The Deficit Myth” … Continue reading Whither MMT?
There are some great mainstream economic podcasts that I enjoy, such as Odd Lots and NPR's Planet Money. They cover interesting topics and are very well done production-wise. However, several times I have wanted to rant about basic mistakes but never bothered. But just listened to this otherwise interesting Planet Money podcast - February 24, … Continue reading Good “Mainstream” Econ Podcasts still get basics wrong, frustrating
Part I, Part II Part III continues with Edmond’s first three examples: New Zealand throughout the 1980sFrance in the early 1980sIsrael mid 1980s hyperinflation France For starters, as in the cases in Part II, we see the twin oil supply inflationary events of the 70s/early 80s. In France, there is a steady and sharp decline … Continue reading Democracy & Profligacy: Will MMT Destroy the World? Part III
[Continued from Part I]In Part One I ask:Name examples where peacetime, politically stable countries (with no foreign-currency denominated debt) have ever spent themselves into inflation? I received a first potential case, the so-called "Barber Boom" in the UK in the early 1970s (which of course segued into the global inflationary spikes of the the two … Continue reading Democracy & Profligacy: Will MMT Destroy the World? Part II
Prologue The worry about a "danger" from understanding how government actually functions/spends was already famously stated by Paul Samuelson decades ago: I think there is an element of truth in the view that the superstition that the budget must be balanced at all times...Once it is debunked, [it] takes away one of the bulwarks that … Continue reading Democracy & Profligacy: Will MMT Destroy the World? Part I of III on the Government Spending→Inflation Myth
Any argument that there is a “fiscal policy versus monetary policy” debate that somehow suggests we primarily rely on the latter is misspecified. You cannot not be primarily “doing fiscal,” it is simply not possible. (Whether done well or not is a different issue; the very belief that somehow fiscal takes a backseat is the key reason it has been done poorly for decades).
We have to think not just of the goods, but also think of "productive capacity" & "varied economy" as "real resources" when we make society-wide import/export calculations
"What happened to get the ideas out was the development of blogs.So Bill developed a blog...This is how the ideas got out. It wasn't through academics. It wasn't through the conferences—those are almost a complete bust. It was the blogs.L. Randall Wray (11 min mark generally, 14 min mark for these qts) A (Very) Oblique … Continue reading A (very) oblique history of MMT, Part III: (Blogs, Mitchell etc.)
[Image: Charge of German infantry against the Russian fortress of Novogeorgievk, 1915. Germans sieging Russians in Poland in other words, soon all to have their currencies collapse.]