EconoMonitor

Great Leap Forward

  • MMT Does Do Policy

    I’ve seen some pretty bizzarre claims about MMTers. They are “tea partiers”, “barely left of center”, who “are not interested in policy”, who “ignore inequality”, who “are only interested in reducing taxes”. “MMTers ignore the fraud of the banksters.” They are at best “one issue” advocates for a particular view on money, taxes, and employment. […]

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  • Yes, Virginia, Taxes Do Drive Money: Confirmation from a Money Manager

    Yet another money manager “bites the dust”, falling for the MMT view that “taxes drive money”. See his piece, “The good you do for the dollar when you pay your taxes”, by Jon Shayne April 3, 2014; http://www.pbs.org/newshour/making-sense/the-good-you-do-for-the-dollar-when-you-pay-your-taxes/ I wonder why this is relatively easy for those who work in financial markets, but almost impossible […]

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  • The Reality of the Present and the Challenge of the Future: Fagg Foster for the 21st Century

    Here is a presentation that I’ll give today at the University of Denver at the annual J. Fagg Foster honors ceremony. Most of you will not know of Foster, but you should. While he did not publish much, he was the professor of a number of prominent institutionalists who attended DU in the early postwar […]

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  • MODERN MONEY IN SIX SHORT VIDEOS

    I recently did an interview for Euro Truffa on six topics related to MMT. The website is here: http://eurotruffa.it/economia/79-mmt/175-intervista-a-l-r-wray-perche-mmt-accorpa-bc-e-tesoro.html They are transcribing my interview to Italian and putting up the videos (I think that only two are up so far). However, they have also posted all of the videos to YouTube. As you can tell, […]

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  • Minsky on the BBC

    In case you have not listened to it, this program on Minsky is actually quite good. Pay attention to the clips from Minsky’s own talks at Levy, and also to the praise coming from Larry Meyer–former colleague of Minsky at WashU (I was Meyer’s TA; he also funded our softball team, which was pretty good […]

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  • Yes, Paul, Banks Do Create Money; and Bill does TED!

    Readers know that MMT-ers and Minskyans drive Paul Krugman crazy by insisting that banks really do “create money out of thin air”, and that his “deposit multiplier” story has got it all wrong. See my last post on that here: http://www.economonitor.com/lrwray/2014/02/19/minsky-on-banking-early-work-and-critiques-by-krugman-and-horizontalists-revisited/. The Bank of England has just released a series of papers that are more-or-less on […]

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  • When Will They Ever Learn: Uncle Sam is not Robin Hood

    Memo to Obama: Don’t tie progressive spending policy to progressive tax policy. Each can stand on its own. Reported today in the Washington Post: Obama proposes $600 billion in new spending to boost economy President Obama on Tuesday unveiled an ambitious budget that promised more than $600 billion in fresh spending to boost economic growth […]

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  • Podcast: MMT, External “Constraints”, and Our Critics

    Some of you might have already seen the link, but Stephanie Kelton did a podcast with me: Feb. 27 Podcast with Randy Wray Posted: Thu, 27 Feb 2014 18:30:46 +0000 Play Now For the record. If those links don’t work, go here: http://feeds.feedburner.com/stephaniekeltonpodcasts; or here p.odca.st/6894040 We dealt with a variety of bogus criticisms raised by […]

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  • MMT AND EXTERNAL CONSTRAINTS

    To Fix or To Float, that is the question. MMT argues that a sovereign government that issues its own “nonconvertible” currency cannot become insolvent in terms of its own currency. It cannot be forced into involuntary default on its obligations denominated in its own currency. It can “afford” to buy anything for sale that is […]

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  • Minsky on Banking: Early Work and Critiques by Krugman and Horizontalists Revisited

    Some quarter of a century ago I wrote a paper that presented Minsky’s approach to money, linking it to his Financial Instability Hypothesis. The paper was rejected by one of the heterodox journals, because a referee took particular issue with my use of the new word “securitize” adopted from Minsky to describe the packaging of […]

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