Theory & Other Problems Archives - Philosophy of Money

The most important social scientist since Keynes

5th July 2019

Three validity claims The German social scientist, Jürgen Habermas, has just turned ninety. It is an odd reflection on our times that he is not renowned. In an age of academic specialisation this may reflect o...

A reply to Stephanie Kelton

Eric Lonergan

19th March 2019

Definitions of Money, Monetary Policy, Theory & Other Problems

19

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...

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’...

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 ...

An intellectual virus, a bubble, or both?

Eric Lonergan

27th April 2018

Finance & Asset Pricing, Theory & Other Problems

The recent phase of market volatility precipitated by the February 2018 ‘flash crash’ has morphed into fears of a growth slowdown, phoney Trumpian trade wars, and real wars. But the initial crash itself may be ...

If you don’t like trade deficits – tax the rich?

Eric Lonergan

12th April 2018

Austerity, Economic History, Money in Europe, Theory & Other Problems

1

Has the word ‘deficit’ done more damage than any other in economics? Deficits are bad, surpluses are good. In economics, nothing could be further from the truth. How can there be virtue, if every virtuous act r...

Values in economics

Eric Lonergan

21st January 2018

Theory & Other Problems

1

A philosophical aside I feel obliged to declare my biases up front. I've spent almost as much time studying moral philosophy as economic theory. Somewhat ironically, I decided to study economics after I had re...

MMT part III – conclusion, and a conversation with Ben Bernanke

Eric Lonergan

20th October 2017

Definitions of Money, Economic History, Monetary Policy, Theory & Other Problems

22

My last two blogs have revisited the issue of whether or not base money is a liability of the state. The issue played a central role in a discussion over the future of monetary policy at the Brussels think-tank...

The most important social scientist since Keynes

A reply to Stephanie Kelton

Stock prices & r*

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

MMT and fiscal rules (part I) – a prologue

Why is universalism losing?

An intellectual virus, a bubble, or both?

If you don’t like trade deficits – tax the rich?

Values in economics

MMT part III – conclusion, and a conversation with Ben Bernanke

Reviews of Eric’s book

CNBC: market sell-off is ‘noise’

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