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Beiträge, die mit mmt getaggt sind

The US can *never* run out of USD.

All Americans could have universal healthcare, housing, education, transport, etc.

Resource availability is the key constraint, not money.

And such strategic fed spending can actually lower inflation, not increase it.

Debate: Is reducing the national debt a fiscal priority?

Stephanie Kelton at Arizona State, April 16 (livestream at 8 pm ET)

https://stephaniekelton.substack.com/p/my-upcoming-debate-with-stephen-moore

Kaboub re inflation
https://www.youtube.com/watch?v=lN12lOC5qGk

#uspol #useconomy #mmt #keltondebate .

My Upcoming Debate with Stephen Moore

Should the federal government make reducing the national debt a fiscal priority?
Stephanie Kelton (The Lens)
#uspol #mmt #useconomy #keltondebate

2 For those who haven't seen this empirical study on how sovereign currency issuing works:

The investigation into the Bank of England proves the UK govt doesn't use taxes for fed spending.

US, Japan, etc systems are similar (but not so EU countries).

The govt creates new money when it undertakes expenditure, rather than spending being financed by taxation or issuing debt

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4890683

#mmt #uspol #ukpol #currencyissuing #bankofengland .
Reference: Berkeley, A., Ryan-Collins, J., Tye, R., Voldsgaard, A. and Wilson, N. (2022). The self-financing state: An institutional analysis of government expenditure, revenue collection and debt issuance operations in the United Kingdom. UCL Institute for Innovation and Public Purpose, Working Paper Series (IIPP WP 2022-08). Available at: https://www.ucl.ac.uk/bartlett/public- purpose/publications/working-paper.... Abstract: This paper constitutes a first detailed institutional analysis of the UK Government’s expenditure, revenue collection and debt issuance processes. We find, first, that the UK Government creates new money and purchasing power when it undertakes expenditure, rather than spending being financed by taxation from, or debt issuance to, the private sector. The spending process is initiated by the government drawing on a sovereign line of credit from the core legal and accounting structure known as the Consolidated Fund (CF). Under directions from the UK finance ministry, the Bank of England debits the CF’s account at the Bank and credits other accounts at the Bank held by government entities; a practice mandated in law. This creates new public deposits which are used to settle spending by government departments into the economy via the commercial banking sector. Parliament, rather than the Treasury or central bank, is the sole authority under which expenditures from the Consolidated Fund arise. i Cookie settings HBL taxation,

The self-financing state: An institutional analysis

This paper is an institutional analysis of government expenditure, revenue collection and debt issuance operations in the United Kingdom.
UCL Institute for Innovation and Public Purpose
#ukpol #uspol #mmt #BankOfEngland #currencyissuing

#MMT is just a description of how money works. Unlike mainstream economics, which smuggles in a whole lot of ideological stuff disguised as laws of nature, it doesn't say how money, as an instrument of the issuer, should or should not be used.

That's our job as citizens, not as economists.

Some people (naming no names) argue that inequality ought to exist as just reward for merit. That's a moral argument (a bad one), not an economic argument.

@AustRealProg
#mmt @Darren :verified:

Another limit is the disproportionate accumulation of money by private individuals who use their power to undermine the public purpose. This risk is even higher than that of inflation. The management of wealth distribution is therefore another key.

In my opinion, #MMT could take this more into account
#mmt

Modern Monetary Theory (MMT) describes how monetary systems actually operate: Government spending adds money to the economy, taxes remove it.

The limit isn't "running out of money" - it's real resources and inflation.

A currency-issuing government can always pay for what's for sale in its currency.

The key is managing real resources wisely for public purpose.

Understanding this opens new possibilities for addressing social needs and full employment sustainably.

#MMT #Economics
#economics #mmt

That sounds quite academic. Can you give a historical example where this scenario has occurred? In all examples of hyperinflation (that I know of), money printing was a reaction to an economy that was out of balance for other reasons, such as impoverishment due to a shortage of goods

@DrALJONES
#MMT
#mmt @DrALJONES

In fact, government spending is constrained by people's attitudes toward money, not by finances or resources. If the government creates huge amounts of money to cover its huge spending, people will simply reject this kind of plunder, they will reject money. MMTers are wrong when they try to convince people that there are no pitfalls to government spending. #mmt #economics #mmtfallacy
#economics #mmt #mmtfallacy

I don't need to watch the video. Fadhel Kaboub himself admits that "The risk of #inflation remains under control so long as government spending does not outpace the economy’s real productive capacity—the availability of physical resources, skilled labor, equipment and technical know-how." And he doesn't take into account at all that people can and will reject the money, if the government goes too far with its printing press. https://denison.edu/academics/economics/wh/129585 #mmt #economics

Why Government Spending Can’t Turn the U.S. Into Venezuela

In a recent article, Prof. Fadel Kaboub says "When poor countries fall prey to inflation, it’s not because they’re “too socialist."
Denison University
#inflation #economics #mmt

The US can *never* run out of USD.

All Americans could have universal healthcare, housing, education, transport, etc. And such strategic fed spending can actually lower inflation, not increase it*

Important debate on whether reducing the national debt a fiscal priority (hint, it's not):

Stephanie Kelton at Arizona State, April 16 (livestream at 8 pm ET)

https://stephaniekelton.substack.com/p/my-upcoming-debate-with-stephen-moore

* https://www.youtube.com/watch?v=lN12lOC5qGk

#USEconomy #mmt #uspol #filmfindingthemoney #thedeficitmyth .

My Upcoming Debate with Stephen Moore

Should the federal government make reducing the national debt a fiscal priority?
Stephanie Kelton (The Lens)
#uspol #mmt #useconomy #filmfindingthemoney #TheDeficitMyth

Bank of England

The "govt creates new money... when it undertakes expenditure, rather than spending being financed by taxation from, or debt issuance to, the private sector".

https://www.ucl.ac.uk/bartlett/public-purpose/publications/2022/may/self-financing-state-institutional-analysis

#mmt #usfed .

The self-financing state: An institutional analysis

This paper is an institutional analysis of government expenditure, revenue collection and debt issuance operations in the United Kingdom.
UCL Institute for Innovation and Public Purpose
#mmt #USFed

Friday's blog post (14/03) is now posted (12:37 EAST) - Episode 12 (S2) of the Smith Family Manga is now available – Mrs Boff is called in! - https://billmitchell.org/blog/?p=62430 #mmt
Season 2 promotional graphic for Episode 12
#mmt

Thursday's blog post (13/03) is now posted (14:39 EAST) - Tariffs and more - Part 1 - https://billmitchell.org/blog/?p=62428 #mmt
#mmt

Monday's blog post (10/03) is now posted (16:14 EAST) - Five years into a pandemic and fiscal fictions have left space for nonsense to propagate - https://billmitchell.org/blog/?p=62412 #mmt
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Thursday's blog post (06/03) is now posted (16:53 EAST) - British government spending cuts will probably increase the fiscal deficit and make the 'non negotiable' fiscal rules impossible to achieve - https://billmitchell.org/blog/?p=62410 #mmt
#mmt

Monday's blog post (03/03) is now posted (15:16 EAST) - Britain can easily increase military expenditure while increasing ODA to honour its international obligations - https://billmitchell.org/blog/?p=62391 #mmt
#mmt

Thursday's blog post (27/02) is now posted (11:05 EAST) - Fiscal policy must be the tool of choice to respond to major climate related calamities - BIS - https://billmitchell.org/blog/?p=62388 #mmt
#mmt

Monday's blog post (24/02) is now posted (16:50 EAST) - The Left has created the swing to the Right - some reflections - https://billmitchell.org/blog/?p=62387 #mmt
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Monday's blog post (17/02) is now posted (13:19 EAST) - Britain and its fiscal rule death wish - https://billmitchell.org/blog/?p=62361 #mmt
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Friday's blog post (14/02) is now posted (09:41 EAST) - Episode 11 (S2) of the Smith Family Manga is now available – intergenerational tensions arise within the Smith household - https://billmitchell.org/blog/?p=62359 #mmt

#mmt

Thursday's blog post (13/02) is now posted (13:01 EAST) - ECB should take over and repay all the joint debt held by the European Commission after the pandemic - https://billmitchell.org/blog/?p=62355 #mmt
#mmt

Monday's blog post (10/02) is now posted (14:55 EAST) - Economics as politics and philosophy rather than some independent science - https://billmitchell.org/blog/?p=62352 #mmt
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Thursday's blog post (06/02) is now posted (14:25 EAST) - The decline of economics education at our universities - https://billmitchell.org/blog/?p=62349 #mmt
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Monday's blog post (03/02) is now posted (13:49 EAST) - Germany's sectoral decline and its obsession with fiscal austerity - https://billmitchell.org/blog/?p=62339 #mmt
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Thursday's blog post (30/01) is now posted (13:57 EAST) - The Case of the Missing Report - Part 2 - https://billmitchell.org/blog/?p=62325 #mmt
#mmt

Wednesday's blog post (29/01) is now posted (15:24 EAST) - Australia - inflation continues to fall and the RBA should cut interest rates - https://billmitchell.org/blog/?p=62327 #mmt
#mmt

Monday's blog post (27/01) is now posted (16:10 EAST) - The Case of the Missing Report - Part 1 - https://billmitchell.org/blog/?p=62317 #mmt
#mmt

Thursday's blog post (23/01) is now posted (06:37 Manila Time) - Field trip to the Philippines - Report - https://billmitchell.org/blog/?p=62312 #mmt
#mmt

Monday's blog post (20/01) is now posted (12:05 EAST) - ECB research shows that interest rate hikes push up rents and damage low-income families - https://billmitchell.org/blog/?p=62308 #mmt
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Monday's blog post (13/01) is now posted (12:59 EAST) - Fake news is not just the practise of the Right - https://billmitchell.org/blog/?p=62292 #mmt
#mmt

Thursday's blog post (09/01) is now posted (17:48 EAST) - Shifts in societal attitudes towards well-being mean that a degrowth strategy does not necessarily have to be political suicide - https://billmitchell.org/blog/?p=62286 #mmt
#mmt

Wednesday's blog post (08/01) is now posted (13:59 EAST) - Underlying inflation in Australia continues to decline - https://billmitchell.org/blog/?p=62279 #mmt
#mmt

Monday's blog post (06/01) is now posted (12:50 EAST) - Bank of Japan research refutes the main predictions made by economists about the impacts of large bond-buying programs - https://billmitchell.org/blog/?p=62277 #mmt
#mmt

Sunday's blog post (29/12) is now posted (17:29 EAST) - My blog has gone on holidays - https://billmitchell.org/blog/?p=62274 #mmt

#mmt

Monday's blog post (23/12) is now posted (16:56 EAST) - The Japanese government is investing heavily in high productivity sectors and revitalising regions in the process - https://billmitchell.org/blog/?p=62273 #mmt
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Thursday's blog post (19/12) is now posted (18:30 EAST) - Australian government announces a small shift in the fiscal deficit and it was if the sky was falling in - https://billmitchell.org/blog/?p=62267 #mmt
#mmt

Here is why budget deficits in the US are bad:

Because Republicans understand money. They create money to help their constituents - the rich.

When Democrats are in office Republicans drive deficit fear to convince Democrats not to help their constituents - the public - which hurts them in elections.

PS Same for the UK.

#MMT
#mmt

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