(https://twitter.com/wbmosler/status/1182367585251352577)
A thread on what #MMT has to say re: small, non-hegemonic or so-called “developing” countries, a vital topic for any truly global & decolonial political economy.
has been working on this for decades. But recently many MMTers & fellow-travelers r now taking it on 1/x
Scott Richmond@bazintastic
urr. 9
@videotroph As the federal election in Canada produces some truly stupid discourse about government deficits and debts in the media up here, I find a have a question: what does MMT have to say about smaller countries…
Warren B. Mosler #MMT@wbmosler
In 25 years we’ve started 3 currencies that have continuously provisioned their universities with student labor- the UMKC Buckaroo, the Denison Dollar and the Franklin Franc with 0 rate policies, 0 inflation, 0 unemployment and in economies that couldn’t be smaller or more open.
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(https://twitter.com/wbmosler/status/1181980622690103301)
Warren B. Mosler #MMT@wbmosler
In 25 years we’ve started 3 currencies that have continuously provisioned their universities with student labor- the UMKC Buckaroo, the Denison Dollar and the Franklin Franc with 0 rate policies, 0 inflation, 0 unemployment and in economies that couldn’t be smaller or more open.
Clonal Antibody@ClonalAntibody
Has the labor pricing point for those currencies changed over time? Has the taxation rate changed over time? These are both in control of the institution issuing the currency. Could these changes be viewed as inflationary/deflationary?
Warren B. Mosler #MMT@wbmosler
eta 2 beste erabiltzaileei erantzuten
One hour of student labor earns and has been ‘the value of’ 1 buckaroo for the last 20+ years.
oooooo
(https://twitter.com/wbmosler/status/1182021591099723781)
Warren B. Mosler #MMT@wbmosler
In 25 years we’ve started 3 currencies that have continuously provisioned their universities with student labor- the UMKC Buckaroo, the Denison Dollar and the Franklin Franc with 0 rate policies, 0 inflation, 0 unemployment and in economies that couldn’t be smaller or more open.
In other words, the impact on the savings could be inflationary/deflationary. So I worked 10 hours for 10 buckaroos, saved 5 of them – 5 hours of labor. Over time, those 5 buckaroos were being exchanged for only 1 hour of labor. Wouldn’t that be inflationary?
Warren B. Mosler #MMT@wbmosler
eta 2 beste erabiltzaileei erantzuten
No. Think ‘relative value’. 20 years ago you had to pay a student $5 to sell you a buckaroo. Last I heard a buckaroo cost $20. But it’s still and always has been the value of 1 hour of student labor.
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This is quite incredible. So, if localities are granted the ability to tax their citizens [in a new local currency] they can utilize their unused resources (perhaps even do their own JG) without interfering with federal currency? Why can’t euro countries do this?
Warren B. Mosler #MMT@wbmosler
They can, but it doesn’t end the unemployment caused by euro fiscal policy, as the euro shortage doesn’t get alleviated. Just like if it doesn’t rain, you can put everyone to work, but they are still thirsty for water.
Indeed. It seems that the local currency can be cleverly designed turn <unemployment caused by €> into <full employment + drain on country’s €>. It wouldn’t be sustainable because they’d eventually run out of € to pay for the ECB’s surplus. Am I thinking about this right?
Warren B. Mosler #MMT@wbmosler
eta 2 beste erabiltzaileei erantzuten
You could create more employment but there would be people looking to work for euro who can’t find euro paying jobs and suffering accordingly.
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(https://twitter.com/agu_mario/status/1182474150763552770)
eta 3 beste erabiltzaileei erantzuten
Couldnt they buy euro with the new currency as umkc students buy dollars with buckaroos?? (As long as someone who has to pay the tax in the new currency has euro)
2019 urr. 11·
Warren B. Mosler #MMT@wbmosler
Yes, but that just shifts euro between those caught in the shortage, which continues, as evidenced by people looking to sell goods and services for euro in a ‘downward spiral,’ etc.
Right. If no one subject to the buckaroo tax has dollars, it wont be possible to buy dollar with buckaroo. Its an obligation in a foreign currency: the only way to get dollars is to sell something in exchange (export). And a floating fx doesnt solve THIS “external constraint”.
eta 3 beste erabiltzaileei erantzuten
That’s kind of what I had in mind . (That’s why I said drain on € to pay for ECB surplus).
But then again, it sounds like the familiar schemes to pay off a foreign debt through currency exchange, which can end in hyperinflation.
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(https://twitter.com/wbmosler/status/1182679113389236224)
Warren B. Mosler #MMT@wbmosler
eta 3 beste erabiltzaileei erantzuten
First sentence not true.
2019 urr. 11·Twitter Web App
eta 3 beste erabiltzaileei erantzuten
ok just trying to understand: is there any (quantity) limit then to the ability of buckaroo to buy dollars?
Warren B. Mosler #MMT@wbmosler
Please read my 7dif book, thanks!
