The Bank of England Debunks the Money Multiplier

Regular readers will be more than familiar with the debunking of the money multiplier and the concept that banks don’t lend out reserves or deposits (see here & here), but it’s nice to see it catching on in places more important than this lowly blog.  A new research report out of the Bank of England debunks the money multplier in […]

The Sankowski Solar Boom

The Sankowski Solar boom – it’s in full force: “2013 was a banner year for clean energy and the U.S. solar industry was no exception. California, the nation’s solar standout, more than doubled its rooftop solar installations last year from 1,000 megawatts (MW) to 2,000 MW. To put this number in perspective, writesBernadette Del Chiaro of […]

Monetary Realism is About Choosing Knowledge Over Ideology

“skate where the puck’s going, not where it’s been”. – Wayne Gretzky There’s a famous saying that’s repeated on rare occasion when the fiscalist view of the world dominates policy – “we’re all Keynesians now”.  It’s generally a misleading way of labelling an entire population and such declarations are usually the views of biased policy thinkers.  Now, […]

Why Do Economists Obsess over Government Money?

I was reading this post by Scott Sumner in which he concluded with the following: “This post has already run too long, so I’ll do the quantity theory of money in the next post.  We’ll see how the central bank can control the value of money (and NGDP), by changing the currency stock.” I just […]

Understanding Moneyness

This section will be a new addition/clarification to my paper on Understanding the Modern Monetary System.   Modern forms of money are largely endogenous (created within the private banking system), but are organized under the realm of government law.  The specific unit of account in any nation deems how money will be denominated.  The government therefore […]