Share this page!

Enter URL or ID to Unroll

You can paste full URL like: https://x.com/threadreaderapp/status/1644127596119195649
or just the ID like: 1644127596119195649

How to get URL link on X (Twitter) App

  1. On the Twitter thread, click on or icon on the bottom
  2. Click again on or Share Via icon
  3. Click on Copy Link to Tweet
  4. Paste it above and click "Unroll Thread"!
  5. More info at Twitter Help
Clint Ballinger Profile picture
@clintballinger
Nov 15, 2021 • 24 tweets • 7 min read • Read on X
Scrolly
Economic Schools as paintings:
Classical Image
Mercantilism Image
Marxism Image
Institutional Image
Neoclassical Image
Chicago School Image
New Keynesian Image
"New Consensus" Macro/Monetary Policy (just missing a pin) Image
Post Keynesian Image
MMT Image
Austrian (I don't know why...just feels right) Image
Sociology (and real business/sectoral research) Image
Microeconomics (as often defined) Image
Economic History Image
Environmental Economics Image
Austrian Economics #mises Image
Modern Monetary Theory #mmt Image
Modern Monetary Theory #mmt Image
Internet version of MMT Image
Mainstream & Marxist critiques of MMT Image
Chicago School Image
Econometrics #econometrics Image
Bullionism (chrysohedonism) Image
Note mercantilism ≠ bullionism. See, e.g., "Mercantilism & Economic Development: Schumpeterian
Dynamics, Institution Building,
& International Benchmarking." #econtwitter
andreasaltelli.eu/file/repositor…

• • •

Missing some Tweet in this thread? You can try to force a refresh
　

Keep Current with Clint Ballinger

Clint Ballinger Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @clintballinger

Clint Ballinger Profile picture
Dec 18
🧵1/12
I’ve been thinking about how mainstream Economics encodes political commitments before any formal results for a long time.

Below is a more systematic attempt to show how this happens through routine model-setup-language that is treated as mundanely technical
#econtwitter
“Under standard Inada conditions…”

Standard according to which world?
These conditions rule out subsistence constraints, zero marginal product of capital, poverty traps, and hard resource limits.

Entire development paths disappear under “regularity”
“Calibrate parameters to match long-run moments”

Sounds purely empirical. But calibration treats observed distributions as benchmarks the model must reproduce, anchoring it to existing inequality.

History becomes validation rather than an object of explanation
Read 14 tweets
Clint Ballinger Profile picture
Dec 13
Most of the global collateral market is a workaround for not having direct access to central bank money.
But imagine giving households, firms, and institutions direct access to zero-interest Fed accounts.

I think we really need to keep bringing up these "big" discussions…
…we have big problems & everyone agrees that times are weird now anyway.
Some thoughts to get the ball rolling:
Trys would no longer be needed as the primary source of risk-free collateral. Repos, securities lending, & collateral trading could shrink; less transformation needed.
Rather than limited trys (dangerously) rehypothecating to back money-like claims, direct access to central bank $ could replace collateral chains, simplify the system & improve transparency- it could work w fewer synthetic safe assets, lower leverage, & simpler intermediation
Read 12 tweets
Clint Ballinger Profile picture
Oct 29
Several things to point out on this: 1) As I've long pointed out, the Medieval/Early Modern origins of our modern monetary systems could not have been the simple “chartal origin story;” there simply wasn't the bureaucratic/tax system in place until...
much later, & both the institutional change AND the understanding of monetary systems were torturously slow to change; it happened more by emergence w most key actors still not fully grasping the change (if they did, we would not have own-currency Sov Bonds, nor Central Banks of
the type we have now).
However, as I've also long pointed out, this also doesn't matter for understanding our existing chartal world per se, which was the (I'd say inevitable) outcome. Coins were a 2,500 year "interlude," w still older ancient "money" a braid of the 3 strands of
Read 11 tweets
Clint Ballinger Profile picture
Apr 9
US Gov spends. What it doesn’t tax back is necessarily held by non-gov.

Why oh why does anybody think it makes sense to then make the economy 10 trillion times more complex by packaging up those $ as securities varying in rates & maturities from weeks to 30 years?
Literally no one knows wtf is going on.
Seriously. Just read the financial press. And I don’t mean now.
I mean ever.

And don’t give me any Chesterton’s fence bs.

Just let $ savers be $ savers. No interest, no varying rates, no maturities.

The whole ecosystem=waste of time
Ps this is nothing against Brad, who knows more than most.
The point is there are literally scores of posts & finance articles daily, often saying the exact opposite things, about a system we don’t need, wasting everyone’s time, and lining the pockets of some for no reason at all
Read 8 tweets
Clint Ballinger Profile picture
Oct 26, 2023
1970s and Monetary Policy Today

A 🧵…

In a recent twitter thread I outlined why I believe the new Reg Q inflation theory can be seen as supporting post-keynesian views. However, there is a meta issue I was not able to address in such a short format.
The DSS paper argues that by putting a ceiling on bank-deposit interest rates, Regulation Q stopped the transmission of interest rate hikes (Fed funds rate), thereby breaking the primary tool of the Fed from 1965~1980 when Q became binding on bank deposit rates.
Besides the importance for understanding 1970s inflation, the meta point their paper makes can be interpreted as supporting mainstream monetary beliefs. Chiefly, that *but for* Reg Q stopping proper transmission, monetary policy was (before 1965) and later (post ~1980) working..
Read 12 tweets
Clint Ballinger Profile picture
Oct 23, 2023
1970s Inflation Revisited: New Reg Q Theory Supports *Heterodox* Economic Policy

A🧵1/X

“we offer a different explanation for the Great Inflation..The explanation is simple, yet so far completely overlooked”

Drechsler, Savov, Schnabl (DSS) #econtwitter cepr.org/voxeu/columns/…
Image
Myths on 1970s inflation sadly still shape the beliefs of the economists who have the ears of policymakers.
The belief interest rates “fixed” the problem rather than worsening it,
combines w an only weak acceptance of the Vietnam War/73/79 Oil shocks as prime causes, has led to decades of wasted time on “monetary policy” (read: fiddling w a single knob, interest rates) at the expense of the real economy and investment in fiscal expertise and policy
Read 22 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us!

Send Email!

:(