There is an interesting piece (which I was alerted to by Graham) from the Gower Initiative for Modern Money Studies about Universal Basic Income (UBI). The Gower Initiative, being ‘Modern Monetary Theory’ (MMT) advocates, believe of course, in the advantages of the Job Guarantee (JG), but whilst, whichever your preference, there is much to agree… Read more
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Money
The case against Universal Basic Income (UBI)
Continuing with the review of the GIMMS criticism of Universal Basic Income (UBI) and their proposals in favour of what they call a Job Guarantee (JG), which is in fact, more accurately, a Job Offer. RegrettabIy I consider that their criticsm of UBI to be ill thought through. I take issue with “the problem of… Read more
Don’t build a ‘new economics’ without properly understanding the old
James Meadway, economic adviser to Shadow Chancellor John McDonnell, has written in the ourEconomy section of Open Democracy on the necessity for ‘building a new economics’: Some parts [of new economics] are half-remembered, and then placed together in peculiar (and often largely useless) new ways, like “Modern Monetary Theory” – a reconstruction of post-war Keynesianism… Read more
Not on the money
There is an interesting report in Business Insider of a survey of America’s economists. It states In the latest survey of 42 of America’s top economists by the Chicago Booth School of Business, not a single respondent agreed with the basic tenants [I think they meant tenets!] of Modern Monetary Theory (MMT): 36% of economists… Read more
Don’t use MMT except in an emergency?
For the first time that I am aware of MMT (Modern Monetary Theory) has been mentioned in the UK ‘mainstream’ rather than specialist press. David Smith, Economics correspondent of the ‘Sunday Times’, published an article in the paper on Sunday which is reproduced with free access on his own website. He states: Then there is… Read more
What targets should the Bank of England have?
I have always considered the form of monetary control suggested by Positive Money – currently a sort of beefed up Monetary Policy Committee which would decide how much money the whole economy needed per year – is both undemocratic and places, in effect even more power with bankers. If the government wanted to spend more… Read more
Does MMT trump Marxist theory?
There is an interesting article by Carlos Garciá Hernández here, arguing that Modern Monetary Theory (MMT) renders the Marxist theory of ownership redundant (I wonder if Paul Mason has read it?): What happened when fiat money was introduced? As we have seen, the state that issues its own money is no longer dependent on any kind… Read more
MMT is perhaps gaining hold in the US as there are some very spurious arguments against it
Modern Monetary Theory (MMT) has received further criticsm in the US – perhaps particularly because that seems to be where it is (can we hope?) gaining a hold. Britain is still mired in the all-consuming provincial business of Brexit. This is a writer on ‘Medium’: “…the treasury can only spend by first ensuring it has… Read more
US versus European Community Banking
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
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