MMT is real gold

The misleading title is because one reader has suggested (thank you, Damien) that I might respond to an ‘Economist’ article on MMT (Modern Monetary Theory). Which seems to go under various headings ‘Magic or logic?’ ‘Nutty or essential?’ depending on which Economist edition you are reading. Remarkably, it summarises MMT fairly well, whilst pointing out… Read more

The magic multiplier effect

When you plant a tree in the ground, it grows, producing seeds which become the source of new trees. But remember, trees can only grow where there are resources – water, sunlight and nutrients in the soil. We can think about government investment in the same way. In a democracy, government spend happens because society… Read more

Everything you ever wanted to know about Bitcoin – and just a little bit more

There is a marvelous article in the ‘Washington Post’ (yes, I know it’s owned by Bezos, the man that owns Amazon, so is not my usual read either) but it provides the best summary of Bitcoin that I’ve yet encountered. I’ve quoted the introduction to whet the appetite: Bitcoin changes prices too quickly to be… Read more

Why can’t a household be more like a bank?

The short answer to this question is of course that householders don’t issue their own money. But banks do. So perhaps we should be complaining less about the household analogy that is the bugbear of a proper understanding of how the economy works  – and suggesting another more fitting analogy. A government with a sovereign… Read more