“Digital Corrections – will crypto save capitalism, and the FED ?”

The FED has no way of re-balancing or raising rates without crashing the markets. The FED doesn't want to take the blame. Not again. Even though the markets are crying out for a correction.  There is no discipline. The level of incontinence is unprecedented. QE has got to stop. But how? One would like new … Continue reading “Digital Corrections – will crypto save capitalism, and the FED ?”

De facto MMT disequilibrating DSGE ?

Turns out Peter Bofinger is not the only  German economist who can  see MMT across the sea.  There is at least one other.  Maybe more to follow? "Say it quietly, but Germany has learnt the lessons of Keynes," argues Thorvaldur Gylfason. Mind you, he is talking fiscal largesse, not ECB money.  In the "we are … Continue reading De facto MMT disequilibrating DSGE ?

German Economist sees MMT across the sea

update (25/1/2021) - sroll down for original post - Peter Bofinger  "Corona - Krise  :  Stunde der MMT?" Plurale Ökonomik  : "Wie funktioniert unser Geldsystem, was macht eine Zentralbank und welche Ursachen haben Finanzkrisen? Diesen und weiteren Fragen wird in der Ringvorlesung Finanzkrisen und Geldsysteme“ nachgegangen...." more on youtube       or watch below: Vortrag … Continue reading German Economist sees MMT across the sea

De-Growth on Bloomberg

Nearly a year ago I did a first blog on Greta, ending with a promising beginning: "I was about Greta Thunberg’s  age when the “The Limits To Growth”  appeared on the bestseller table of my local bookshop..." But stuff happens and I never got much further on "Green Growth". I was planning to reconstruct my … Continue reading De-Growth on Bloomberg

Merkel Momentum?

"No more lame duck" but Hoffnungstraeger ist Merkel jetzt als Euro Presidentin, schreibt Merkel-Biographin Judy Dempsey und diagnistiziert eine dritte Merkelwende. Auch Politico's Paul Taylor sieht einen Merkel Milestone Moment: "In the twilight of her chancellorship, Angela Merkel has secured her place in the pantheon of European statesmanship by agreeing to common EU borrowing to help the … Continue reading Merkel Momentum?

Schwarze Null Vergiftet Europa

In einem Artikel vor dem Euro Gipfel  schlagen die deutschen Finanz- und Außenminister Olaf Scholz und Heiko Maas flexible ESM-Anpassungen  und einen paneuropäischen Garantiefonds vor, um "sehr schnell, unkompliziert und im nötigen Umfang ... gezielte Hilfe zu leisten."    Lesen Sie hier den ganzen Artikel Die Minister scheinen einen "möglichen komplexen Kompromiss" vorzuschlagen, wie Adam … Continue reading Schwarze Null Vergiftet Europa

Creditors Kill Europe

In a pre-summit article, German finance and foreign ministers Olaf Scholz and Heiko Maas  suggest flexible ESM adjustments to provide  "quick and targeted relief... (and) ... a pan-European guarantee fund to secure loans ... (so)  the European Investment Bank (EIB) would ensure liquidity for small and medium-sized enterprises in the EU countries." read the whole … Continue reading Creditors Kill Europe

Billionaires Chip In A Trillion

Speaking for the  The Giving Pledge campaign group, Bill Gates has announced their plan to make an unprecedented contribution to the current crisis. The aim is to commit 10% of their wealth to help all those who are falling through the net of the current rescue packages, including all the victims in poorer countries. The campaign … Continue reading Billionaires Chip In A Trillion

Crisis!

Is the coronavirus an act of green terrorism? Allegedly the currently globalising  coronavirus did not just accidentally escape from the  Wuhan virology lab  but was deliberately smuggled out by a 21 year old researcher and self declared Greta Thunberg fan.  "I wanted to disrupt the earth-killing global economy" declared the biochemistry student who sneaked out … Continue reading Crisis!

QE4: Q.E.[Qd] = E.Q.[Qs]

According to my usually in-the-know Berlin banking contact, some IMF mega-brains have come up with a cunning plan to help their departing boss with her new job. It's being tested in Washington right now and Ms Legarde will try and sell it to the Berlin Elite  in November. It comes with a brand new acronym : … Continue reading QE4: Q.E.[Qd] = E.Q.[Qs]

Apropos of MMT…

There has been an explosion of attention for MMT this year. Most coverage is rather superficial, either bagging manna from heaven or burning a straw man. Having initially dismissed MMT as "socialist quackery" The Economist eventually produced a perhaps surprisingly cautious article  (read GayaMoney copy here). But for more serious engagement it is best to consult primary sources, … Continue reading Apropos of MMT…

MMT and Millennial Socialism

Letter to the Editor 19 February 2019 Socialist Quackery It is interesting that the Economist has lately started to mention MMT (Modern Monetary Theory), a school of thought that, after all, wasn't born yesterday but goes back to a seminal 1913 essay about money by A.Mitchel Innes, a banker whose understanding of money was arguably … Continue reading MMT and Millennial Socialism