Money Creation in the Modern Economy (Bank of England)

This is an excellent paper: http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf The paper is written in easy to understand language and helpful balance sheet graphics. It does a particularly good job in simplifying several technical issues. As Cullen Roche notes, the money multiplier is dispatched to the ash can of history, where it belongs. It is reassuring to see this sortRead More

Negative Money

This post is just for fun – or negative fun – or something. It follows from a Nick Rowe post with the same title: http://worthwhile.typepad.com/worthwhile_canadian_initi/2014/02/negative-money.html I’m going to tell a story that should be similar in concept to Nick’s, but described in quite a different way. I think it should end up in about theRead More

More Toxic Stuff from MMT

I attempted to be respectful in my last post, which dealt with a difficult and potentially sensitive subject. And so I appreciated the first comment following it: “Modest, professional, and humble. We need more bloggers with this type of positive, constructive objective. Nice work, JKH.” I try to make that effort in most cases, but this post willRead More

Comments on – “Modern Money Theory 101: A Reply to Critics” by Éric Tymoigne and L. Randall Wray

Introduction This is the paper by Éric Tymoigne and L. Randall Wray: http://www.levyinstitute.org/pubs/wp_778.pdf The paper as suggested by the title is a reply to various critics who have raised some issues around Modern Money Theory (Modern Monetary Theory, MMT) in recent years. MMT as a school of economic thought might be viewed in simple modelRead More