1000 Castaways: Introduction

(Waterstones, Amazon, Barnes & Noble, Dymocks; available for order through any bookstore and as epub or Kindle/Nook, Apple etc.) From ancient times there emerged two systems for coordinating the optimal use of real resources in an economy One coordinates the private use of factors of production Another coordinates group decisions to carry out group projects … Continue reading 1000 Castaways: Introduction

1000 CASTAWAYS: Fundamentals of Economics

UPDATE: It's Done! Live on Amazon here - 1000 CASTAWAYS: FUNDAMENTALS OF ECONOMICS is now available- Hardcover, Paperback, & Kindle at Amazon.com Hardcover, Paperback, & NOOK at Barnes & Noble   Angus and Robertson (Australia), Fishpond (New Zealand shipping),  Waterstones (UK), !NDIGO (Canada),  India Print Edition & Amazon India, South Africa Print Edition Ebook (Epub … Continue reading 1000 CASTAWAYS: Fundamentals of Economics

MMT & the Fourth Spark Plug: Descriptive vs. Prescriptive revisited

Imagine you are an experienced mechanic. One day your neighbour comes home with a newly purchased used car. It is running terribly – sputtering and running slowly with little power. You look under the hood. It is a four cylinder car in good condition, and you notice that one of the spark plug cables is … Continue reading MMT & the Fourth Spark Plug: Descriptive vs. Prescriptive revisited

Decouple Spending From Bond Sales

Government bonds for funding are well understood to be an unnecessary, vestigial custom for currency-issuers.* There has been discussion of eliminating them as they serve no funding purpose. An argument in favor of eliminating bonds is that they are the foundation for the widely held yet false belief that a "national debt" limits what public … Continue reading Decouple Spending From Bond Sales

The Myth of the Currency Hierarchy

(response to Coppola's "The Myth of Monetary Sovereignty" and related discussions) PREFACE A) Properly understanding the macroeconomy allows countries to operate at their full real-resource potential, whatever that might be. B) Understanding the macroeconomy does not change the real resource potential of countries. That is a more fundamental question concerning the improvement of the institutions … Continue reading The Myth of the Currency Hierarchy

Kelton Shouldn’t Have Ceded This Point To Noah

(Re: Just When Should We Start Worrying About Deficits?) Kelton: "Deficits...can be too big." Why did Kelton so easily cede this point to Noah? "Deficits" (tax:savings ratio) do not realistically matter unless a government were to make insane fiscal policy choices. She lets Noah frame the discussion in a neoliberal fantasyland and thus loses the … Continue reading Kelton Shouldn’t Have Ceded This Point To Noah