Money/Banking/Economics

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Where does MMT fit in Andy?

I mean a lot of it just makes good intuitive sense based on actual observations, but where does it sit on a theoretical level? Is it a pure macro theory in direct opposition to New Keynesian macro?
 
Feb 1, 2013
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Ferminal said:
Where does MMT fit in Andy?

I mean a lot of it just makes good intuitive sense based on actual observations, but where does it sit on a theoretical level? Is it a pure macro theory in direct opposition to New Keynesian macro?
Yes is nice to base things on actual observations instead of models that have no relevence to the real world. Point of the article is really to show that it is a sovereign issuer who has control over bond yields and are a monetary tool (to enable CB's to hit their target interest rate) NOT fiscal financing so forget all the rubbish about bond vigilantes & market forcing yields higher.

MMT is just really the nicname of Neo Chartalism, so a Post Kenynsian school (radical pk its been described as) Founders being Bill Mitchell, Warren Mosler (the Warren mentioned in the article) & Randy Wray.

http://en.wikipedia.org/wiki/Chartalism
 
Apr 20, 2009
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AndyMMT said:
Yep always a must read

Others to hit
Moslereconomics.com
mikenormaneconomics.blogspot.com
nakedcapitalism.com (not officially MMT as its not its reason d'tre but is really)

The prescence is strong on the net.
I'll check out mosler and mike. I'm already one of "yves smith's" readers.

by the way, what do you think? is the gold bubble really bursting?
 
Jan 27, 2013
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O.K., done some reading, still ignores the problem of exponential growth, population, energy and the effects on the enviro. Aside from that it makes more sense.
 
Fearless Greg Lemond said:
It is really nice to see how capitalism cannot survive without growth.
growth is not actually a feature/flaw of capitalism. Most capitalist-style markets actually enter a mature phase where there is practically no growth anyway.

Some people assume "growth" is the same thing as an active market. I would describe and active market as goods/services are exchanged frequently and there are new services and new participants. Somewhere in an active market are signs of growth.

Where you get the urgency around growth is when an economy roughly permits speculative and ponzi borrowing http://en.wikipedia.org/wiki/Hyman_Minsky.
Recent history shows how easy it is to confuse speculative/ponzi borrowing with an active market. Not too many people willing to distinguish between the two either.
 
Jan 27, 2013
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DirtyWorks said:
growth is not actually a feature/flaw of capitalism. Most capitalist-style markets actually enter a mature phase where there is practically no growth anyway.

Some people assume "growth" is the same thing as an active market. I would describe and active market as goods/services are exchanged frequently and there are new services and new participants. Somewhere in an active market are signs of growth.

Where you get the urgency around growth is when an economy roughly permits speculative and ponzi borrowing http://en.wikipedia.org/wiki/Hyman_Minsky.
Recent history shows how easy it is to confuse speculative/ponzi borrowing with an active market. Not too many people willing to distinguish between the two either.
So when does this ethereal capitalism make it's appearance?
http://www.youtube.com/watch?v=ioyq6GNbJg0

Yes, exponential growth of money (debt) can be addressed but that's but one feature of the exponential growth we're confronting on a finite planet. New sophistry won't change that.
http://www.youtube.com/watch?v=0272BTXef9I
 
Feb 1, 2013
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Cobblestones said:
Marx's 'Das Kapital' isn't based on dodgy Excel spreadsheets. Just sayin'
ha like it :) The declining rate of profit doesnt seem to have come about yet though.
 
RetroActive said:
So when does this ethereal capitalism make it's appearance?
http://www.youtube.com/watch?v=ioyq6GNbJg0

Yeah, don't get me started on the definition of capitalism. There be dragons.


Yes, exponential growth of money (debt) can be addressed but that's but one feature of the exponential growth we're confronting on a finite planet. New sophistry won't change that.
http://www.youtube.com/watch?v=0272BTXef9I
I had a longer reply, but it's probably wasted on whatever world view to which you have committed yourself. Stated simply, this is a political problem, not economic. Deregulate intellectual property policy, and perhaps raise the cost of capital in public markets. A number of changes to support a broad middle class need to be resurrected too.

Your links are a kind of micro-austerity that doesn't quite pan out.
 
Jan 27, 2013
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DirtyWorks said:
I had a longer reply, but it's probably wasted on whatever world view to which you have committed yourself. Stated simply, this is a political problem, not economic. Deregulate intellectual property policy, and perhaps raise the cost of capital in public markets. A number of changes to support a broad middle class need to be resurrected too.

Your links are a kind of micro-austerity that doesn't quite pan out.
Lol, I had a response to your longer post and my internet cut out.

It's both a political and economic problem, more fundamentally it's a values problem.

All "growth" is exponential, that's arithmetic, something no economist wants to acknowledge.

I have no idea how you derived micro-austerity from those links. :confused:
 
DirtyWorks said:
growth is not actually a feature/flaw of capitalism. Most capitalist-style markets actually enter a mature phase where there is practically no growth anyway.

Some people assume "growth" is the same thing as an active market. I would describe and active market as goods/services are exchanged frequently and there are new services and new participants. Somewhere in an active market are signs of growth.

Where you get the urgency around growth is when an economy roughly permits speculative and ponzi borrowing http://en.wikipedia.org/wiki/Hyman_Minsky.
Recent history shows how easy it is to confuse speculative/ponzi borrowing with an active market. Not too many people willing to distinguish between the two either.
Heh, neoclassical steady-state only this time A = financial fraud.
 

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