The hyperinflation in Weimar Germany in 1922-23 has become the poster child of mainstream economists – and especially the monetarists – when presenting the benefits of constraining governments by the rules of ‘sound finance’.
Their narrative presumes that governments are naturally inclined to spend beyond their means and that, if left to their profligate ways, inflation ‘gets out of hand’, leads to hyperinflation in a continuous, accelerating, unstoppable catastrophic collapse of the value of money.
In contrast to this ubiquitous mainstream analysis, we recognize a fundamentally different origin of inflation, and argue that inflation requires sustained, proactive policy support. And, in the absence of such policies, inflation will rapidly subside.
We replace the erroneous mainstream theory with the knowledge of Modern Monetary Theory (MMT) identifying both the source of the price level and what makes it change. We are not Weimar scholars, and our aim is not to present a comprehensive historical analysis.
We examine the traditionally reported causal forces behind the Weimar hyperinflation, along with the factors that contributed to the hyperinflation and to its abrupt end.
The purpose of this paper is to present our view of the reported information from an MMT perspective.
A new paper by @PhilArmstrong58 and @wbmosler

‘Weimar Republic Hyperinflation through a Modern Monetary Theory Lens’
#inflation #hyperinflation #MMT…

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More from @GowerInitiative

16 Oct 19
Slightly belatedly, this week GIMMS celebrate our 1st Anniversary 🥂🍾
A big thank you to all our followers and supporters who have contributed to our efforts over the last year to push for a broader awareness of #MMT From our London launch event last October.....
Where we announced the launch of our website, featuring our own #MMT factsheets with links and videos to the work of core academics, plus our searchable Zotero database of published papers.
We continue to enrich our site with our weekly #MMTLens blog.
Many thanks to our Advisory Board; Warren Mosler, Bill Mitchell, Randall Wray, Mathew Forstater, Stephanie Kelton, Pavlina Tcherneva, Fadhel Kaboub,Rohan Grey, Stephen Hail, Deborah Harrington & Jessica Ormerod for their advice, support and faith in our project.
Read 15 tweets
6 Oct 19
Please read & act on this long but incredibly important #NHS thread...

Gimms founding member and longtime dedicated public service campaigner at @ThePublicMatter Deborah Harrington, who when asked 'How much of the NHS has already been privatised?'

Answered -
Pretty much all of it.

While all eyes are on companies like Virgin thinking they are the threat the NHS itself has been broken up into over 500 ‘provider bodies’ which are a mix of the arms’ length public interest companies, private and voluntary sectors. 1/
The ‘NHS’ Foundation Trusts are companies which run subsidiary companies and compete with one another for contracts and sub-contract to the private sector for ‘extra capacity’. 2/
Read 19 tweets
27 Feb 19
“With floating exchange rate policies, central banks target policy interest rates - prices - rather than any money aggregate. The narrative favoured by central banks and academics is that of the central bank adjusting the quantity of reserves supplied in order ....”
“to keep market rates in line with their target rate.
This implies that, in the US case for example, the Fed varies the quantity of reserves in order to achieve its interest rate target.
However, we argue in favour of a reverse causality vis-a-vis orthodox analysis...”
“and contend that rather than adjusting the supply of reserves to meet its policy rate, as the monopoly issuer of reserves in a floating exchange rate regime, the central bank, in practice, acts as the price-setter for the level reserves demanded by the banking system”
Read 4 tweets
6 Jan 19
“The monetary system is a tool to move resources to the government: the government imposes a tax on its citizens, payable only by a token which only comes from the government.”
“In order to get the token (money) to pay the tax, the citizens must work for the government, or must work for someone else who already has the tokens.
A government deficit is when the government spends (gives out tokens) more than it taxes (takes tokens back)”
“The extra tokens that the government gives out but does not take back ends up as savings in private hands.
If private citizens don’t want these extra tokens, then they will try to buy things with them instead of holding on to them.”
Read 6 tweets
26 Dec 18
Today we launch our new blog space: MMT Long Read

Our aim is to bring to attention the published academic papers and articles on Modern Monetary Theory, and related subjects for a more in-depth commentary aimed at those wishing to expand their understanding.
For our opening publication we are delighted to present an article by @PhilArmstrong58
Philip, a teacher of business, economics and engineering for 34 years, is currently studying for a PhD in Modern Monetary Theory & Heterodox Alternative approaches.…
In the New Year, we shall be expanding the Resources page on our website to include key research papers and including a link to the accessible database of published papers and articles, which we are currently developing.
Read 4 tweets
8 Dec 18
Please note, this research is economic garbage.
The U.K. government doesn’t collect anyone’s tax to put aside for the future whether that’s for pensions or social care.
There will be no funding black hole for social care in 2031.
It is a government choice not to fund it today and it will be a government choice whoever is in power to fund it or not in 2031.
The only constraint to the provision of social care services that any future government will face will be a resource one not a financial one.
“Research carried out by pensions and risk consultancy Hymans Robertson suggested a German-style system could raise half of the money needed to plug the £30b-a-year gap in social care funding the U.K. is facing by 2031”
Read 4 tweets

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