Monthly Archives: May 2011

Debt & Deficit in a Nutshell

A Summation of what we have learnt

Posted in LayPerson | Tagged , | 3 Comments

Myth of Money Multiplier

This is one of probably many things I’ve forgot on introducing you all to Modern Monetary Theory.  The myth of the money multiplier or how private banks really operate. One of the hard-core parts of mainstream macroeconomic theory that gets … Continue reading

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The Natural Rate of Interest is Zero

This blog can be deemed to follow on from earlier blog, the role of the Central Bank (Federal Reserve). Why the “natural” interest rate is zero Modern monetary theorists consider monetary policy to be a poor tool for counter-stabilisation. It … Continue reading

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Job Guarantee and Inflation Control

In this vein we are suggesting that politicians should set a minimum acceptable living standard and ensure that a base level job is always available to allow all citizens to achieve that living standard independent of welfare payments. This is … Continue reading

Posted in Inflation, LayPerson | Tagged , | 6 Comments

Controlling Inflation

There are two broad ways to control inflation and buffer stocks are involved in each: Unemployment buffer stocks: Under a mainstream NAIRU regime (the current orthodoxy), inflation is controlled using tight monetary and fiscal policy, which leads to a buffer … Continue reading

Posted in Inflation, LayPerson | Tagged , | 16 Comments