What You've Never Been Told about the Economy (#MMT For Conservatives - Part 2)

in #economics4 years ago

Part 2 of MMT for Conservatives

Part 1 - Intro: Gold isn't money and the national debt is great

Dylan Moore of the Volitional Science Network and Nima Mahjour of EconomicsJunkie.com go over the basics of MMT: what you've never been told about the economy.

-The concept of Credit Money and the Statist origins of money
-Sectoral Balances: how foreign trade can affect money supply and economic conditions
-Floating vs. Fixed Currency Systems: the arbitrariness of the gold standard
-Why do governments sell bonds? Do they actually fund spending? No. They are essentially risk-free assets for rich people.
-What do federal reserve interest rates do? Nothing.
-If interest rates do nothing, why does the Fed control them?
-What does Quantitative Easing do? Turns out it's nothing to worry about.
-The basics of the private banking system

Real Progressives Steven Grumbine interview with Nima Mahjour:

Debt: The First 5000 Years by David Graeber

How Government Surpluses Can Cause Economic Depressions: http://www.economicsjunkie.com/government-budget-surpluses-can-cause-economic-depressions/

Capacity Utilization: Total Industry https://fred.stlouisfed.org/series/TCU