More from @barua_ashish

Ashish Barua आशिष बरूआ #MMT 📈📊📒💼

@barua_ashish

Jan 7, 2022

If a private enterprise sees an opportunity to make profits it will take up the venture and will to the bank to borrow the money for the new venture. If the bank is convinced about the returns, it will grant banks ₹ out of the thin air(and this is NOT intermediation) and them to

the private enterprise. The bank does not calculate whether it has enough ₹ in its reserve account at the RBI(India's Central Bank) nor does it dig into the money deposited by people to provide loans to support the claims. If it needs more reserves later the bank will borrow!

In aggregate, then, the private banks decide how many bank-₹ are issued (based on their calculations for potential profits) and the #RBI responds by creating any new Reserve fiat rupees necessary to cover the resulting “clearing” processes in the system. The new Reserves are

Read 5 tweets

Ashish Barua आशिष बरूआ #MMT 📈📊📒💼

@barua_ashish

Jan 7, 2022

One of the key factors of the weakening of monetary sovereignty is external debt and it is connected to 3 main factors, which is true for almost all developing countries. First is the absence of food sovereignty, any country that imports a lot of food lacks economic sovereignty.

The second factor is dependence on the external sector for energy sovereignty, like India imports more than 80% of its crude oil requirement, and the third factor is the deficiency in industrial, that is a country that exports low-value goods and imports high-value goods. Now

the problem with India's manufacturing plan is that the country will be just an assembler for the world and importing all high-value content like machines and technology. Now, these three become the main sources of deprecation in the currency of the developing world, and if this

Read 5 tweets

Ashish Barua आशिष बरूआ #MMT 📈📊📒💼

@barua_ashish

Jan 4, 2020

@arthur_eckart

@arthur_eckart @jlounsbury59 @AuburnParks @stf18 @mcgilcoli @FadhelKaboub @GaneshHegde7 @tonywestonuk @sashi31363 @StephanieKelton @tymoignee @pdacosta @GaelicTorus Hope you have gone through this part of the article as well - Here’s an example. As many economists have lately been pointing out, these days the old story about rising inequality, in which it was driven by a growing premium on skill, has lost whatever relevance it may have had.

@arthur_eckart

@arthur_eckart @jlounsbury59 @AuburnParks @stf18 @mcgilcoli @FadhelKaboub @GaneshHegde7 @tonywestonuk @sashi31363 @StephanieKelton @tymoignee @pdacosta @GaelicTorus Since around 2000, the big story has, instead, been one of a sharp shift in the distribution of income away from wages in general, and toward profits. But here’s the puzzle: Since profits are high while borrowing costs are low, why aren’t we seeing a boom in business investment?

@arthur_eckart

@arthur_eckart @jlounsbury59 @AuburnParks @stf18 @mcgilcoli @FadhelKaboub @GaneshHegde7 @tonywestonuk @sashi31363 @StephanieKelton @tymoignee @pdacosta @GaelicTorus And, no, investment isn’t depressed because President Obama has hurt the feelings of business leaders or because they’re terrified by the prospect of universal health insurance.

Well, there’s no puzzle here if rising profits reflect rents, not returns on investment.

Read 10 tweets

Share this page!

Ashish Barua आशिष बरूआ #MMT 📈📊📒💼

People who liked this thread also liked...

Try unrolling a thread yourself!

More from @barua_ashish

Ashish Barua आशिष बरूआ #MMT 📈📊📒💼

Ashish Barua आशिष बरूआ #MMT 📈📊📒💼

Ashish Barua आशिष बरूआ #MMT 📈📊📒💼

Did Thread Reader help you today?

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

Send Email!