QE is debt reduction
QE is not a liability transformation - it is debt reduction
The remuneration of bank reserves has been a source of significant analytical confusion among economists. This arcane technicality matters far more t...
Marx has the last laugh
I cannot think of a better interlocutor than Chris Dilow. He raises another set of interesting questions in his reply to my reply. I am in danger of completely forgetting our original divergence of thought, but...
Angrynomics: a reply to Chris Dillow
Chris Dillow writes perhaps the most interesting economics blog I know. Its scope is considerable, and despite his declaration of bias - he self-identifies as a ‘marxist’ - he is typically empirical. His recent...
The Prudence Principle: a new rule for fiscal policy
Should the government run a budget deficit or a budget surplus? What size should the deficit or surplus be?
Devising a rule which allows the public to assess the integrity of government is a major challenge...
The most important social scientist since Keynes
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
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*
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)
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
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?
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 ...