Modern Money Theory
by L. Randall Wray · first published 2012
12mentions
4recommended by
4HN commenters
2015–2020first – last mentioned
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…exporting is a net cost, importing is a net benefit. For more on this see: Introductory video: https://www.youtube.com/watch?v=i35uBVeNp6c Book that describes everything in detail: http://www.amazon.com/Modern-Money-Theory-Macroeconomics-Sov...
on “I.M.F. Makes China’s Renminbi One of World’s Select Currencies” ↗…any impact on aggregate demand, but fiscal policy would be much easier to implement. Video on how this works: https://www.youtube.com/watch?v=i35uBVeNp6c Book on how this works: http://www.amazon.com/Modern-Money-Theory-Macroeconomics-Sov...
on “American big business faces the G20 in a fight for $2.1T in unpaid tax” ↗Indeed! And once you're through with that check out Modern Money Theory by Randall Wray which puts the whole shitfight into a solid economical context!
on “U.S. Can't Make Weapons Fast Enough to Meet Demand” ↗…it sounds too conservative to be progressive and too progressive to be conservative (and yet contains the most complete description of how currency works out of any of them!) [1] http://www.amazon.com/Modern-Money-Theory-Macroeconomics-Sov... [2] https://www.youtube.com/watch?v=0zEbo8PIPSc
on “The resolution of the Bitcoin experiment” ↗Fiat money is government money. I recommend anyone interested in understanding fiat money to read about Modern Money Theory (for instance here: http://neweconomicperspectives.org/modern-monetary-theory-pr...). It changed my perspective for sure.
on “St. Louis Fed official: No evidence QE boosted economy” ↗…Central banks can influence this by making the creation of new money cheaper or expensive. http://www.economonitor.com/lrwray/2013/08/15/banks-dont-len... To anyone interested in these issues, I recommend Modern Money Theory ( http://neweconomicperspectives.org/modern-monetary-theory-pr... ).
on “Nine of the World’s Biggest Banks Form Blockchain Partnership” ↗…surplus, which led to a financial crisis. It's very simple: either the government is in debt to the people, or the people are in debt to the governmet. The latter is a perverse situation. Please read about Modern Money Theory. https://www.youtube.com/watch?v=TDL4c8fMODk https://www.nytimes.com/2017/10/05/opinion/deficit-tax-cuts-...
on “Government to borrow nearly $1 trillion this year 84 percent jump from last year” ↗…widely held misconception that the government needs to finance its spending. It doesn't. It just spends money into existence. Treasuries are a political constraint, not a technical one. Please read about Modern Money Theory. https://www.nytimes.com/2017/10/05/opinion/deficit-tax-cuts-... https://www.youtube.com/watch?v=TDL4c8fMODk
on “Government to borrow nearly $1 trillion this year 84 percent jump from last year” ↗Macroeconomics by Bill Mitchell (https://amzn.to/2XyoTrU) The go to text book to understand the mechanisms and mechanics behind Modern Money Theory.
on “Ask HN: What are you reading to make sense of the economy?” ↗…"funded", because governments have no issue with affordability -- they issue the currency. Video on how this works: https://www.youtube.com/watch?v=i35uBVeNp6c Book on how this works: http://www.amazon.com/Modern-Money-Theory-Macroeconomics-Sov...
on “American big business faces the G20 in a fight for $2.1T in unpaid tax” ↗…could just as easily have gotten that money from other banks with accounts at the Fed anyway (so long as there was sufficient cash reserves to satisfy the demand for dollars!) [1]http://www.amazon.com/Modern-Money-Theory-Macroeconomics-Sov...
on “I.M.F. Makes China’s Renminbi One of World’s Select Currencies” ↗…the quantity of money and the interest rate, they have to choose one, and they choose the interest rate. As I said in another post, I was totally confused about how it works until I started to read the Modern Money Theory version of all this. Here, explained by the Bank of England (pdf): https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...
on “Ask HN: What are you reading to make sense of the economy?” ↗