Monetary Realism

Understanding The Modern Monetary System…


A tale of 2 r’s

The Piketty data problems are the huge talk right now, but I want to point out something entirely different. Brad Delong points out there are 4 different rates and Piketty does not do a great job differentiating them: The four different r’s are: The real interest rate at which metropolitan governments can borrow: call this… Read More

A Fiat Currency Valuation Model?

JP Koning says: “But there may be another solution to the backwards induction problem. I’m going to show that the market establishes the value of modern fiat money under a CPI standard in the exact same way that it establishes the value of a very familiar instrument; the standard corporate bond. Since corporate bonds are… Read More