Blog - Philosophy of Money

It’s time for the ECB to use its monetary power

28th March 2019

Helicopter Money, Monetary Policy, Money in Europe

Eurozone growth has stalled and inflation is below the ECB’s definition of price stability. As the recent actions of ECB make clear, further monetary easing is necessary for the ECB to fulfil its mandate. Un...

A reply to Stephanie Kelton

Eric Lonergan

19th March 2019

Definitions of Money, Monetary Policy, Theory & Other Problems

14

The crux of the MMT debate This recent article by Stephanie Kelton is crystal clear and reveals the crux of the ‘MMT debate’. It’s all about central bank independence. Also listen to this INET interview wi...

Redesigning monetary policy

Eric Lonergan

6th March 2019

Helicopter Money, Monetary Policy, Money in Europe

1

We need a modern monetary policy (MMP). Policy needs redesigning for three fundamental reasons: Firstly, the mental models for thinking about how the macro-economy in the developed world works have been brok...

Stock prices & r*

Eric Lonergan

28th February 2019

Finance & Asset Pricing, Monetary Policy, Theory & Other Problems

2

Economists pay insufficient attention to asset prices. Ask most economists what the relevance of the bond equity correlation is for fiscal policy and they will be baffled. You’ll be lucky if they know what you’...

The ethics of a Brexit referendum

Eric Lonergan

25th January 2019

Articles, Economic History, Sample Of One

5

The debate over Brexit has been dominated by propaganda. To date, I have had sympathy with the one ethical argument, which has been made most effectively by Mehreen Khan, for leaving the EU. It is shared by man...

Draghi’s law of conditional safety

Eric Lonergan

24th January 2019

Finance & Asset Pricing, Money in Europe

1

Understanding the Eurozone The fundamental macroeconomic policy challenge faced by the Eurozone is how to have a risk free asset - which is essential to the functioning of a modern financial system - while sim...

Functional finance and fiscal rules – a synthesis (Part II)

Eric Lonergan

5th November 2018

Definitions of Money, Helicopter Money, Monetary Policy, Theory & Other Problems

16

Introduction A curious argument has broken out over the Labour’s proposed fiscal rule. Some advocates of functional finance, in particular, have been vociferous in their criticisms. There is scope for a consid...

MMT and fiscal rules (part I) – a prologue

Eric Lonergan

28th October 2018

Definitions of Money, Monetary Policy, Theory & Other Problems

11

When I explained the essential tenets of Modern Monetary Theory (MMT) to Ben Bernanke, over dinner in Washington, he replied somewhat quizzically, “Isn’t that just economics?” In fact, on the accounting treatme...

Why is universalism losing?

Eric Lonergan

12th October 2018

Theory & Other Problems

5

There is a tension in all enlightened ‘identity politics’. How do we combat discrimination without accepting the premise that there is significant difference? And how do we promote universalism without denying ...

It’s time for the ECB to use its monetary power

A reply to Stephanie Kelton

Redesigning monetary policy

Stock prices & r*

The ethics of a Brexit referendum

Draghi’s law of conditional safety

More on post-interest rate monetary policy

Functional finance and fiscal rules – a synthesis (Part II)

MMT and fiscal rules (part I) – a prologue

Why is universalism losing?

Reviews of Eric’s book

CNBC: market sell-off is ‘noise’

Monetary policy & babysitting: why rates are so low, and ‘what’s next?’