Your prejudice is so obvious that it’s blinding [TheStandard: A moderator moved this comment to Open Mike as being off topic or irrelevant in the post it was made in. Be more careful in future.]
The professionals who are involved in the CATA conference are either lying or incompetent. Or both. I think they're lying, in the same way that the priest lies when he says the wafer transforms into the body of Christ in the worshipper's mouth: he knows ...
Really. The comment above mine states “The professionals who spoke out against CATA are either lying or incompetent” but you haven’t asked for evidence on that comment.
The lineup of speakers is strange and unconvincing. One is a music therapist with no experience in the subject matter. Another is an ICT specialist who appears to have [deleted] of transgender women. The third [deleted]. Not one person involved in this ...
Reserve Bank data on household debt including debt on rental properties owned by households. https://www.rbnz.govt.nz/statistics/key-graphs/key-graph-household-debt Note the steep increase from 2000-2007. Household debt comprises mortgage loans, consumer ...
I would say economists like Keen, Kelton, Wray, Mitchell and financier Mosler, perhaps historian Robert Skidelsky, Koo etc are iconoclasts and revolutionary thinkers in a way. Keynes to a certain extent is still a revolutionary - in a mild paternalistic ...
One final point Pat - you do realise that private credit booms - banks creating lots of money out of thin air - can be equally inflationary as governments deficit spending willy nilly. But we allow banks to do this (rightly so but in a much more regulated ...
The true purpose of economics should be to work out the best way to employ and distribute resources so as to maximise well-being. I see it in a utilitarian way. Currently the vast majority of what passes for "economics" is to justify economic settings that...
NZ Jester - but the legacy of that low public debt in the Cullen years was a huge explosion in private household debt. Households borrowed and borrowed and borrowed and bid up house prices and bought rentals. And now we have housing costs as the number one...
Both National and Labour accept the concept of the NAIRU - the idea that a certain proportion of NZ citizens must be kept unemployed and impoverished to control inflation by putting downward pressure on wages. They both avoid true full employment in the ...
I agree about the job guarantee. It's something that resonates - a fair day's work for a fair day's pay. If people can't find a job in the private sector the government has a responsibility to give them one at a living wage. It is a key plank of MMT and I ...
No National are not competent economic managers aside from being right in not implementing viscous austerity in the face of the GFC. I give them credit for that. And any progressive who goes on about public debt increases under National being proof that ...
We need an Mmt event, Nic Matthew. These issues around fiscal balances need more airing. Progressive policy is hamstrung by current settings and wrong-headed economic theory.
Crucially though our sovereign debt is not denominated in foreign currency. I believe offshore funding of nz banks has reduced since that 2011 article. https://www.interest.co.nz/news/86326/we-look-detail-where-banks-source-their-funds-how-has-changed-over...
"currently debt can be issued cheaper to nation state than its private inhabitants enjoy due to the perceived security of the ability to repay and expectation of sound fiscal control,remove that and you will increase the risk premium to all borrowers…" A ...
"Finally, with the perception a government can issue currency at will consider the political pressure that may be placed upon any administration to provide any and all goods/services." This is indeed a potential problem. The government cannot issue "...
"We’ve got a tiny taste over the past 12 months about what choking loan capital feels like. " Explain further. I'm intrigued. Yes there are capacity issues in construction sector. Coupled with a lot of underemployed and NEET youth in NZ and a desperate ...
You most certainly can default on sovereign debt if it is not in your own currency. Like Argentina's.
No mmt advocate would hold Argentina up as a "shining example" of economic management. Argentina was mentioned in the 2009 article context vis a vis relative benefits of floating sovereign currency versus pegging and perils of debt in anything but your own...
"Budgetary constraints – particularly self-imposed ones – are a good thing. The public and the bank analysts don’t freak out, markets stay stable, credit ratings stay firm. And the coalition looks and behaves as if they have a discipline. There’s no way to...
I think it might be time to organise another public event for MMT in NZ. Or a debate perhaps? A local New Keynesian (Brian Easton??) vs Bill Mitchell perhaps? A general event on public debt and what it is? Labour needs some intellectual backing for fiscal ...
This is a great article http://bilbo.economicoutlook.net/blog/?p=10389 All about MMT and current account deficits. Enjoy!
http://bilbo.economicoutlook.net/blog/?p=5402 MMT in an open economy Pat check out Mitchell on MMT in the open economy. Perhaps MMT in the form of a increased deficit to GDP ratio would cause some increased inflation which may devalue currency somewhat and...
You are doing great work! Keep it up!
Why is debt financed spending less inflationary than overt monetary financed spending - both leave the private sector with the same net financial assets - just in different asset portfolios? Bonds are almost as liquid as cash and can be used almost like ...
Funnily enough I've heard anti-EURO Italians talking about a similar scheme to recreate a parallel new Lira without formally leaving the eurozone. Basically you could pay taxes with it so it has value. Varoufakis had a similar plan up his sleeve with ...
Even if they had used QE it wouldn't have done much good. QE is an asset swap - exchanging bonds for lots of bank reserves. Just having reserves doesn't mean banks lend out more money to productive industry. Banks are not reserve constrained. They can sit ...
Who creates the yen that the Japanese then save? How did they get the money to buy the JGBs with in the first place and to be such magnificent savers? That's right, from the deficit spending of the Japanese government. Accumulated government deficits are ...
Fantastic to see MMT being discussed more. Many thanks to the author. I direct everyone to the fantastic blog maintained by Bill Mitchell http://bilbo.economicoutlook.net/blog/ The blog is truly a magnificent piece of blog scholarship and any query you ...
Love that flag Enzo and the explanation you give.
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