I never knew that the US Federal Reserve had someone on their Board of Governors who specialised in community banking but they do, and the Bank of International Settlements has published a recent speech by the holder, Michelle Bowman. She fills the “role designated for someone with community banking experience on the Federal Reserve Board,… Read more
Category:
Money
Capitalism’s Contradictions and Business Cycles
After Yanis Varousakis in Oxford, his fellow ex-Australian, Steve Keen has been speaking in Berlin. As ever he pursues an unorthodox and original view, which I consider provides great insight. I’ve tried to hone the 45 minute lecture into a short article, focussing and building on what I think is new. Capitalism, Steve Keen suggests,… Read more
A communist manifesto for money?
I am reposting the article below by Wally Mooney (with permission) which was an indirect reply to Paul Mason’s recent article. I thought it was a very lucid and well-argued piece on why Modern Monetary Theory (MMT)’s conclusions as to how money is created is factually correct and that is the case whether you are… Read more
Paul Mason demonstrates all too clearly why much of Labour don’t ‘get’ money
Paul Mason has written an article in the ‘New Statesman’ on the Green New Deal (American style) and concludes: So the best thing for the US left to do would be to issue a new FAQ explaining, in detail, how to pay for the Green New Deal. The British Labour Party, which issued its own,… Read more
No historical justification for the Job Guarantee
When Warren Mosler opines here that where government first spends into the economy it is employing all the people who receive its money, as it is spending into the economy because it wants something in return, it seems plausible. He suggests that government expenditure amounts to employment and sometimes – at least, if one takes… Read more
Rates of Interest
Do you agree that higher interest rates will reduce demand and output/employment? Simon Wren-Lewis asked in this recent twitter feed. (Itself a rich source of all sorts of education!) I replied perhaps, possibly. And I’m beginning to wonder if even that was much too certain…. For a start, since the interest rate on my credit… Read more
Bernard Lietaer RIP
Bernard Lietaer,the most famous Belgian of whom you’ve never heard, has died at the young age of 77. He was the original economist who dared to talk about money, having been warned by Paul Krugman that talking about money would impede his career development, which was almost definitely correct. But when, as the Belgian Central Bank’s… Read more
Parallel currencies can also be powerful
I think most can agree that in order to properly function any state requires a system of defence and of justice. Considering the modern state perhaps we should add that it also needs to have the right to create its own currency. We know that creating a currency for public purpose requires just two conditions:… Read more
MMT as nonsense economics – or not
The first point—that (fiat) money is ultimately a governmental construct in modern capitalist economies, and central banks can indeed produce as much of it as they want—is not news…. is the promising way Jonathan Portes kicks off his argument in ‘Prospect’ against Modern Monetary Theory (MMT), which he calls ‘Nonsense Economics’. He continues: a sovereign… Read more
Anyone for prestige gilts?
There is an interesting article in the New Statesman by Ann Pettifor where she indicates that currencies are made stronger by the taxpayer. She appears to share her view with Thomas Edison: If the Government issues bonds, the brokers will sell them. The bonds will be negotiable; they will be considered as gilt-edged paper. Why?… Read more