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J-CA

Member Since 17 June 2013 - 10:05 AM
Offline Last Active Mar 08 2019 10:46 AM
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Posts I've Made

In Topic: MMT - Modern Monetary Theory

06 March 2019 - 02:17 PM

View PostTraveler, on 05 March 2019 - 10:16 AM, said:

More on Kelton and Krugman. I still dont get it.
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I am really confused by the "literature review" section of the article:

Quote

Krugman calls MMT “a losing game,” and he urges us to remember “all those articles I wrote” over the previous years.
I sampled those articles, and here’s some of what I found.
On Social Security, he asks, “Where is the crisis? Just over the horizon.” And then he warns, “While the present generation of retirees is doing very nicely, the [Social Security] promises that are being made to those now working cannot be honored.”
He called our nation’s finances “a fiscal train wreck” and confessed, “I’m terrified about what will happen to interest rates once financial markets wake up to the implications of skyrocketing budget deficits.”
He insisted that the U.S. faces, “a looming fiscal crisis,” adding, “the only question now is when foreign investors, who have financed our deficits so far, will decide to pull the plug.”
He mused about the potential for accelerating inflation under quantitative easing, writing that the Fed is, “printing $1 trillion of money, and using those funds to buy bonds. Is this inflationary? We hope so!”
He asked, “couldn’t America still end up like Greece?” answering, “Yes, of course. If investors decide we’re a banana republic whose politicians can’t or won’t come to grips with long-term problems, they will indeed stop buying our debt.”
And he puzzled over the different interest rate environments in Japan and Italy, asking, “Why are the interest rates on Italian and Japanese debt so different?” confessing, “I actually don’t have a firm view. But it seems to be an important puzzle to solve.”
No economist is going to get everything right. But the odds of getting things right improve dramatically when you’re working with a macro framework that doesn’t lead you astray. The IS-LM framework is a gadget that will often align with sensible real-world analysis. It may perform better than a stopped clock, but it is no match for MMT.
Isn't this a list of things he was.. uh.. mostly right about? Other than the Italy/Japan thing.. which was just a question.

In Topic: MMT - Modern Monetary Theory

27 February 2019 - 06:49 PM

Also to cite Bruenig's article:

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..the bulk of MMT discourse is not really about what the best policy instruments are for maintaining price stability and debt stability, but rather about using word games to make people believe that the US can have Northern European levels of government spending without Northern European levels of taxation.
This begs the question with respect to "Northern European" anything and policy goals. People in the US can have Canadian levels of provisioned services and union membership because Canada has roughly the same level of taxation as the US, all one actually needs is a shift in policy and priorities. Why fuss over how to pay for policies that will never be enacted when you already have the base to take care of achievable incremental changes that will make things a lot better?
As such if everyone's belief in MMT were completely disingenuous that would be of no consequence! Something to consider!

In Topic: MMT - Modern Monetary Theory

27 February 2019 - 06:34 PM

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“Taxing the super rich at 70 or 80 percent is good in itself, because those people have too much money and are screwing up the world with it. But you don’t need it to fund an agenda.”
MMT aside this strikes me as obviously true. All the "gold encrusted" food you hear about, ridiculous luxuries of all sorts, become way more expensive when you have to convert $1.70 to income from your vast wealth for every $1 you want to spend of super-yachts and the like.
Someone, somewhere, once pointed out to me that the large estates in the Great Gatsby were turned into ordinary residential land after the gilded age in part because of tax changes that made holding those large estates impractical no matter how wealthy you were. I don't know if that is accurate but it seems right and obviously a good thing for New York & Long Island. The tax system should be such that 1/10 acre at $1,000,000 an acre means homes for lots of people is incentivized by the economy over a 15 acre estate for some rich dude with 15 servants.

In Topic: RUSSIA

26 February 2019 - 04:02 PM

View Postdrdredel, on 25 February 2019 - 02:54 PM, said:

And unlike the Russians, the Chinese population isn't a massive death cult enthralled by a strong man.
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您好, you called?

In Topic: So what about this Brexit thing?

25 February 2019 - 04:53 PM

The EU is doing a really nice job of screwing with May on this deadline.. as long as they are offering an extension the intransigent MPs can continue to be intransigent and her strategy to pressure them fails.