Sormena ekonomian (Warren Mosler-en bidez)

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Ezer ezetik,,, Airetik…

Aspaldiko DTM (Diru Teoria Modernoa), geroagoko MTM (Moneta-Teoria Modernoa), jatorrizko MMT (Modern Monetary Theory)…

MMT Is Misunderstood | Warren Mosler

https://www.youtube.com/watch?v=LCUPBpSiISU&t=354s

Timestamps:

0:00 – introduction

0:59 – sponsor

2:01 – Why MMT

5:22 – Tax and Money

16:09 – MMT in Practice

26:01 – Zero is Natural Interest Rate

28:38 – Hyperinflation

31:51 – Unemployment is a Choice 35:34 – MMT in a Nutshell

39:02 – Quantitative Easing

44:50 – MMT and Turkey

1:01:17 – MMT or Myth Game

1:18:33 – Fixed Exchange Rates

1:30:30 – Norway 1:32:02

Volcker 1:36:47

Trade Deficits

1:42:13 – Conclusion

Transkripzioa, hemen:

Warren Mosler: Moneta-Teoria Modernoa-z (MTM-z)

Zipriztin batzuk ekonomiaz

Hasieran tax liability dago, alegia, zorpetze zerga, airetik sortzen dena, inolako kosturik gabe.

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Warren B. Mosler@wbmosler

@GrkStav

erabiltzaileari erantzuten

Tax liabilities create the need for the currency.

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Warren B. Mosler@wbmosler

@DEhnts

erabiltzaileari erantzuten

I’ve been defining fiscal space as the amount of goods and services available for sale at current prices for a given tax liability?

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Warren B. Mosler@wbmosler

The funds to pay taxes come from the gov, so (as a simple point of logic) it can’t possibly, from inception, collect more than it spends. Just like the theater can’t collect more tickets than it sells, etc.

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Interesting how only MMT ‘understands’ why all nations with their own currencies necessarily run deficits (when you include all agents of the government). The rest assume it’s behavioral- over spending or under taxing.

(MMT: Modern Monetary Theory, Euskaraz, Moneta-Teoria Modernoa)

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Warren B. Mosler@wbmosler

@robert19pearson

@ClimateDetecti1

eta

@DEhnts

erabiltzaileei erantzuten

Tax liabilities result in goods and services being offered for sale in exchange for the state’s currency, the tax credit. The state then (through its agents, as single supplier of the required tax credits) when it spends, is determining the terms of exchange, aka the price level.

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Bill Mitchell@billy_blog

The MMT founders define ‘fiscal space’ as the real resources that can be brought back into productive use by increasing net public spending.

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Bill Mitchell@billy_blog

The modern in MMT refers to the period since the Jamaica Accords 1976 which marked the beginning of the fiat currency era and end of the the vestiges for fiscal policy that arose under the Bretton Woods system. The term Modern differentiated the two systems. It was not a joke!

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@MMTLabour

eta

@gio1974db

erabiltzaileei erantzuten

I haven’t read Marx but have been told he didn’t recognize tax liabilities as the cause of unemployment?

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Warren B. Mosler@wbmosler

@fr_hossain

@GregDaco

eta

@WSJ

erabiltzaileei erantzuten

https://pbs.twimg.com/media/FjsFKLcWIAIKKAG?format=png&name=small

Gehigarria:

MMT White Paper

(https://warrenmosler.com/mmtwhitepaper/)

Warren Mosler

The purpose of this white paper is to publicly present the fundamentals of MMT. 

*What is MMT?

MMT began as a description of Federal Reserve Bank monetary operations and accounting, which are best thought of as debits and credits to accounts as kept by banks, businesses, and individuals.

In 1992 Warren Mosler independently originated what has been popularized as MMT. In 1996 he introduced it to the academic community through an internet discussion group, and while subsequent research has revealed writings of authors who had similar thoughts on some of MMT’s monetary understandings and insights, including Abba Lerner, George Knapp, Mitchell Innes, Adam Smith, and former NY Fed chief Beardsley Ruml, MMT is unique in its analysis of monetary economies, and therefore best considered as its own school of thought.

https://www.scribd.com/document/35432615/Soft-Currency-Economics

A General Analytical Framework for the Analysis of Currencies and Other Commodities

http://moslereconomics.com/mandatory-readings/what-is-money/

*What is the Relevance of MMT Today?  

The MMT understandings put policy options on the table that were not previously considered viable.

*What’s different about MMT:

SEQUENCE: 

MMT alone recognizes that the US Government and its agents are the sole supplier of that which it demands for payment of taxes

That is, the currency itself is a simple public monopoly.  

The US government levies taxes payable in US dollars.

The US dollars to pay those taxes or purchase US Treasury securities can only originate from

the US government and its agents. 

The economy has to sell goods, services or assets to the US government (or borrow from the US government, which is functionally a financial asset sale) or it will not be able to pay its taxes or purchase US Treasury securities. 

Ramifications:

  1. The US government and its agents, from inception, necessarily spend (or lend) first, and only then can taxes be paid or US Treasury securities purchased.

This is in direct contrast with mainstream economic models and the rhetoric that states the US government must tax to get US dollars to spend, and what it doesn’t tax it must borrow from the likes of China and leave the debt to our grandchildren.  

MMT therefore recognizes that it’s not the US government that needs to get dollars to spend, but instead, the driving force is that taxpayers need the US government’s dollars to be able to pay taxes and purchase US Treasury securities. 

  1. Crowding out private spending or private borrowing, driving up interest rates, federal funding requirements and solvency issues are not applicable for a government that, like the US, from inception spends first, and then borrows.   

http://moslereconomics.com/mandatory-readings/a-general-analytical-framework-for-the-analysis-of-currencies-and-other-commodities/

How are you going to pay for it?  

The US government, for all practical purposes, spends as follows:

After spending is authorized by Congress, the Treasury instructs the Federal Reserve Bank to credit the recipient’s bank account (change the number to a higher number) on the Fed’s books.     

How is the Public Debt Repaid?  

When US Treasury securities mature, the Fed debits the securities accounts and credits the appropriate reserve accounts.  Interest on the public debt accrues to the securities accounts and the Fed credits reserve accounts to pay that interest.

There are no taxpayers or grandchildren in sight when that happens.

THE CAUSE OF UNEMPLOYMENT:

MMT recognizes that taxation, by design, is the cause of unemployment, defined as people seeking paid work, presumably for the further purpose of the US Government hiring those that its tax liabilities caused to become unemployed.

THE MMT ‘MONEY STORY’- A STATE DESIRING TO PROVISION ITSELF:

  1. The US Government imposes tax obligations payable in US dollars.  
  2. Consequently goods, services and assets are offered for sale to get the US dollars required 

to pay the taxes.

  1. The state can then buy those goods and services.
  2. Taxes can then be paid.
  3. If people, on average, want to earn more than what’s required to pay taxes, goods, services

and assets will be offered for sale in sufficient quantity to obtain those extra dollars.

  1. State spending in excess of taxes- deficit spending- provides the dollars desired to be saved.  
  2. The public debt equals the dollars spent by the state that haven’t yet been used to pay taxes. 
  3. After the state has spent those extra dollars, Treasury bills, notes, and bonds can then be purchased, which depletes the accounts containing the dollars the state has already spent.  
  4. Payments by the US government are added to reserve accounts of Fed member banks.
  5. When securities are purchased, the Fed debits reserve accounts and credits securities

accounts which are also at the Fed. 

INTEREST RATES:

MMT recognizes that a positive policy rate results in a payment of interest that can be understood as “basic income for those who already have money.”

MMT recognizes that with the government a net payer of interest, higher interest rates can impart an expansionary, inflationary (and regressive) bias through two types of channels — interest income channels and forward pricing channels.  This means that what’s called Fed “tightening” by increasing rates may increase total spending and foster price increases, contrary to the advertised intended effects of reducing demand and bringing down inflation.  

Likewise, lowering rates removes interest income from the economy which works to reduce demand and bring down inflation, again contrary to advertised intended effects.  

Furthermore, forward pricing is a direct function of the Fed’s policy rate, and with a policy of a positive term structure of interest rates, the forward price level increases continuously at the policy rate, which is the academic definition of inflation.  

MMT understands that a permanent 0% policy rate is the base case for analysis for a floating exchange rate policy. 

MMT understands that with a permanent 0% policy rate asset prices reflect risk adjusted valuations, and do not “continuously accelerate” as presumed by the term “asset price inflation.”

The MMT understanding of interest rates is at times in direct conflict with the understandings of central banks and the large majority of academics.  We see those “mainstream” views as at best applicable to fixed exchange rate regimes, but in any case not applicable to today’s floating exchange rate regimes. 

http://moslereconomics.com/wp-content/graphs/2009/07/natural-rate-is-zero.PDF

http://moslereconomics.com/wp-content/uploads/2007/12/Exchange-Rate-Policy-and-Full-Employment.htm

INFLATION:

Only MMT recognizes the source of the price level: the currency itself is a public monopoly and monopolists are necessarily “price setters.”  

Market forces determine relative prices. Their only information with regard to the absolute value of the currency comes from the state through its policies and institutional structure.

Therefore:

The price level is necessarily a function of prices paid by the government’s agents when it spends, or collateral demanded when it lends.

In what’s called a market economy, the government need only set only one price, as market forces continuously determine all other prices as expressions of relative value, as further influenced by institutional structure.   

http://moslereconomics-kg5winhhtut.stackpathdns.com/wp-content/uploads/2018/04/Tcherneva_MonopolyMoney_2002.pdf

http://www.levyinstitute.org/pubs/wp_864.pdf

http://moslereconomics.com/wp-content/uploads/2020/11/Weimar-Republic-Hyperinflation-through-a-Modern-Monetary-Theory-Lens.pdf

https://docs.google.com/document/d/1sySbx6EHOAYpAjE4FGnYApdZNyY6rh79KzajZxSU884

The Job Guarantee

Residual unemployment is caused by the government not hiring all of those that its tax liabilities have caused to become unemployed.  That is, it’s a case of a monopolist- the government- restricting supply, which in this case refers to net government spending.  

Current policy is to utilize unemployment as a counter-cyclical buffer stock to promote price stability.  Another policy option is for the government to use an employed buffer stock, rather than an unemployed buffer stock, to promote price stability.    

The Job Guarantee is a proposal for the US Government to use an employed buffer stock policy by funding a full time job for anyone willing and able to work at a fixed rate of pay.  A $15 per hour wage has currently been proposed.  This wage becomes the numeraire for the currency- the price set by the monopolist that defines the value of the currency while allowing other prices to express relative value as further influenced by the institutional structure.

The Job Guarantee works to promote price stability more effectively than the current policy of using unemployment, by better facilitating the transition from unemployment to private sector employment, as private employers don’t like to hire the unemployed.  

It also provides for a form of full employment, and at the same time is a means to introduce minimum compensation and benefits “from the bottom up,” as private sector employers compete for Job Guarantee workers.  

Click to access Full-Employment-AND-Price-Stability.pdf

The 7 Deadly Innocent Frauds of Economic Policy”

https://drive.google.com/file/d/0B_uw3TKux24yeDRqVmFjaTdodjFqcV9HTTkyRkZYb2JOa0d3/view

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