RobertoG

55 ms·

541.
Bank of England: Money creation in the moderm economy (2014)[pdf](bankofengland.co.uk)
4 points by RobertoG 6y ago|0 comments
542.
by RobertoG 6y ago
The Fed balance sheet is kind of irrelevant. What that number means is the quantity of reserves in the system. Only the money that is spend in the real economy has inflationary effects. One more steep is necessary for that money to have rea
543.
by RobertoG 6y ago
I think it's an interesting page. It shows human nature. That the edit wars themselves (lame or not) can be query should be interesting for the students of the human mind and, maybe, even for future historians because it shows what was
544.
by RobertoG 7y ago
It was not my intention to attack anybody but, what roenxi is saying is that, people interested in MMT (like me), is not interested in understanding how the system work, but in lying to people. So, yes, very much not cool.
545.
by RobertoG 7y ago
That's not how it works(1). As the QE programs have showed, you don't get any demand by creating more reserves in a depression. For those reserves to get traction over the economy you need somebody that borrow from the banks. (1)
546.
by RobertoG 7y ago
>>"You also seem to be arguing that centrals banks don't create new money" Not exactly. My undernstanding is that all money comes from the government. That is clear with banknotes for instance, it comes only from one pl
547.
by RobertoG 7y ago
My point is that with a government surplus there is less money being spent in the economy, the same way that with a government deficit there is more money spent in the economy. I don't think this is polemic. Now, in order the governmen
548.
by RobertoG 7y ago
I didn't say that the catholic-fascist dictatorship of country X was evil. I said that after they won (whatever their reasons for starting the fight) they kept the power for 40 years using force and without consulting the population. N
549.
by RobertoG 7y ago
The Bank of Japan, can actually control inflation, because, as we have determined, they control the interest rate. Also, if necessary, the government could raise taxes and run a surplus to diminish inflationary pressures. But those are moot
550.
by RobertoG 7y ago
In a turbulent time in the politics of country X, an important part of the army of that country rebels against the elected government, wins a terrible civil war, and proceed to establish a 40 years catholic-fascist dictatorship. I tried to
551.
by RobertoG 7y ago
It's the Bank of Japan who decide the borrowing rates, so, not problem in that regard.
552.
by RobertoG 7y ago
It's not debt, it's only a number that reflect the accumulate of past government deficits. A government is the issuer of the currency, so, nothing to do with the debt of a household or a business.
553.
by RobertoG 7y ago
Fiscal policy is the obvious solution to aggregate demand problems, not monetary policy.
554.
by RobertoG 7y ago
I'm a little late, but I want to answer for the sake of completeness. >>"Honestly I don't know what point you're trying to make, or what deficits or surpluses have to do with anything." You say "Inflation
555.
by RobertoG 7y ago
>>"This is one of the most absurd claims of the supposedly "descriptive" MMT. Taxation does not delete money from the economy. When the federal government collects taxes, it doesn't take that money and burn it in a
556.
by RobertoG 7y ago
I would like to clarify that the MMT proponents that I follow are not favorable to the QE type of interventions that we have seen in the last years. They only pointed(1), correctly, that QE was not going to be inflationary AND that monetary
557.
by RobertoG 7y ago
The GP is saying that the future generations have not to pay back and that the stimulus is necessary now and it will not be inflationary. It's not saying that it's not possible to spend too much and create undesired inflation. But
558.
by RobertoG 7y ago
Well, first, I suspect that Keynes would be ashamed of what post-keynesians have made of his insights. Anyway, you are implying that the current system is Keynesian, and that there are people advocating to change to a MMT system. But the cu
559.
by RobertoG 7y ago
But MMT it's not a policy, but a model, a description of how the system really already works. For example, many people here is predicting hyperinflation, using the MMT model we can predict that's not going to happen. Many people h
560.
by RobertoG 7y ago
That could be true, but one thing is that the way (or some of the ways) the money is added to the economy is dubious and another that nothing should be done.
561.
by RobertoG 7y ago
>>" [..] We built the system that way deliberately because bartering is not efficient" Not really, the history of money doesn't support that theory. >>"[..] it's increasingly clear that in the future, t
562.
by RobertoG 7y ago
I hope so, but I suspect that the people that is predicting now hyperinflation and the enslavement of our children, will keep doing so despise all absence of evidence. Unfortunately, economics is a very ideologically charged subject.
563.
by RobertoG 7y ago
As it should be. Public debt is just a number that express the accumulated of pass deficits. In order to reduce that number you need a government that, instead of a deficit, have a surplus. If the government has a surplus, less money is spe
564.
by RobertoG 7y ago
That's not how it works, but even if that was the case, if that debt was owned by the Federal Reserve, who get the interest of that money? and who is the owner of the debt?
565.
by RobertoG 7y ago
From who is the government borrowing money? For instance, in the current situation, all the countries are applying stimulus at the same time, so, where is all that money coming from?
566.
by RobertoG 7y ago
Money is just a number in some computer. The important thing is the real economy. Deficits, as any other spending, and depending of the circumstances, could be inflationary, but they don't have to be, it depends of the state of the eco
567.
by RobertoG 7y ago
>>"[..] everyone's money is a bit less worth. " Only if the economy is at full utilization. The reason for the stimulus is that the economy it's not at full utilization, ergo, there will be not accelerated inflatio
568.
by RobertoG 7y ago
Who are people selling their children to, and how?
569.
by RobertoG 7y ago
>>"Fairly sure emotional response is a human-only (or humans and a short list of others?) thing?" Why animals do things if they are not motivated by emotions?
570.
by RobertoG 7y ago
I find the article strangely void of content. If we are investigating funding of discoveries to find a formula to repeat, it seems to me the way to go is, to find the most relevant discoveries and see who funded them. So, I would like to kn

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