Why does MMT recommend the job guarantee and ZIRP?
[A layperson tutorial to #LearnMMT v.1]
MMT is fully a descriptive body of knowledge. Once understood, however, it is simply not reasonable *not* to implement the JG and, secondarily, ZIRP.
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[A layperson tutorial to #LearnMMT v.1]
MMT is fully a descriptive body of knowledge. Once understood, however, it is simply not reasonable *not* to implement the JG and, secondarily, ZIRP.
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If you understand MMT and yet still want neither policy, the burden is on you to justify why large swaths must continue to suffer the ravages of unemployment. MMT demonstrates it is possible to stabilize the economy by keeping all (who want to be employed) *employed*.
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If you understand MMT and yet still want neither policy, the burden is on you to justify why large swaths must continue to suffer the ravages of unemployment. MMT demonstrates it is possible to stabilize the economy by keeping all (who want to be employed) *employed*.
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The absolute ravages of unemployment, on individuals, families, and society as a whole. Unchecked, unemployment behaves no differently than a biological plague. From "Unemployment: The Silent Epidemic" (2017) by @ptcherneva: levyinstitute.org/pubs/wp_895.pdf
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The absolute ravages of unemployment, on individuals, families, and society as a whole. Unchecked, unemployment behaves no differently than a biological plague. From "Unemployment: The Silent Epidemic" (2017) by @ptcherneva: levyinstitute.org/pubs/wp_895.pdf
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You must also justify why income & wealth inequality should be further exacerbated via bond issuance. MMT demonstrates that bond issuance is entirely optional – & yet by offering them, it makes the rich even richer, and locks the poor even more tightly out of the job market.
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You must also justify why income & wealth inequality should be further exacerbated via bond issuance. MMT demonstrates that bond issuance is entirely optional – & yet by offering them, it makes the rich even richer, and locks the poor even more tightly out of the job market.
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Also, it is always unnecessary to PRE-offset new spending 1-to-1 with new bond issuance. Also, the central bank’s target rate can be defended, instead of by offering bonds, by rather paying interest directly on reserves. From @wbmosler and @mattybram: moslereconomics.com/wp-content/gra…
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Also, it is always unnecessary to PRE-offset new spending 1-to-1 with new bond issuance. Also, the central bank’s target rate can be defended, instead of by offering bonds, by rather paying interest directly on reserves. From @wbmosler and @mattybram: moslereconomics.com/wp-content/gra…
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It could also render *both* unnecessary by setting the target rate to zero... and the world would very likely not end.
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It could also render *both* unnecessary by setting the target rate to zero... and the world would very likely not end.
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Basically, although MMT is descriptive, once you understand that description, it is plainly cruel to choose to keep people involuntarily unemployed, when MMT makes it clear that the economy can be stabilized by employing them all. Therefore, MMT and the JG are inseparable.
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Basically, although MMT is descriptive, once you understand that description, it is plainly cruel to choose to keep people involuntarily unemployed, when MMT makes it clear that the economy can be stabilized by employing them all. Therefore, MMT and the JG are inseparable.
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(I’ve only recently learned the implications and subtleties of ZIRP. That’s my best understanding at the moment.)
More information from the #MMT economists is below:
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(I’ve only recently learned the implications and subtleties of ZIRP. That’s my best understanding at the moment.)
More information from the #MMT economists is below:
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According to all core MMT economists, the Federal Job Guarantee (FJG or JG) and MMT are inseparable. The JG is not an optional add on to MMT, it is central:
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According to all core MMT economists, the Federal Job Guarantee (FJG or JG) and MMT are inseparable. The JG is not an optional add on to MMT, it is central:
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The #MMT view of ZIRP (permanently zero interest rate). ZIRP is agreed upon by, at least, MMT core developers Warren Mosler, Mat Forstater, Bill Mitchell, and Scott Fullwiler:
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The #MMT view of ZIRP (permanently zero interest rate). ZIRP is agreed upon by, at least, MMT core developers Warren Mosler, Mat Forstater, Bill Mitchell, and Scott Fullwiler:
/end
