Gower Initiative for Modern Money Studies Profile picture
Independent, promoting an understanding of economics & the policy space afforded by our monetary system for social & environmental justice. #MMT #JobGuarantee
MerryMichaelW ☭ #Communism ☭ #TUSC🎗 #BDS #BLM 🥂 Profile picture 1 added to My Authors
25 Apr
Research Director at @GISP_Tweets & University of Kansas City, Professor Mathew Forstater explains the #GreenNewDeal and what it means for our lives and the economy.
How does the #JobGuarantee fit in with proposals to transition the global economy onto a greener path?
What is green provisioning? What are the changes necessary to sustain critical industries? How can all nations benefit from the development of new technologies?
Read 4 tweets
27 Nov 20
“Even the most simple understandings are lost in the public debate about budget deficits and public debt. The Flat Earth Theorists who whip up deficit hysteria each day like to stun people with large numbers.”
“We would then learn that budget deficits are just the mirror image of non-government savings. Saving is usually considered to be something we should aim for. Increased wealth is also something we usually aspire to.”
“As a matter of accounting between the sectors, a government budget deficit adds net financial assets (adding to non government savings) available to the private sector and a budget surplus has the opposite effect. “

Read 11 tweets
14 Nov 20
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.
Read 6 tweets
24 Oct 20
The U.K. a government is NOT a household OR business, it has the power of the public purse. #MMT exposes the myths and reveals the policy space available for public purpose if we can win the votes to achieve our goals.
Pushing our politicians and policy makers to accept the reality of monetary operations isn’t easy, @StephanieKelton has made it a whole lot easier with her best selling book ‘The Deficit Myth’.
Buy and share a copy and let’s get the U.K. building a better economy.
#LearnMMT Image
The purpose of taxation is for the government provision itself by creating unemployment, driving demand for its currency.
Tax destroys currency returned to the issuer, making space for further spending, it doesn’t pay for anything.
Income & sales taxes are highly regressive.
Read 4 tweets
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
9 Nov 18
#MMTLens #Armistice100
A weekend of quiet reflection.
Today’s blog comes just before the weekend commemorating 100 years since the end of the First World War, the ‘war to end war’.
When it started people thought it would be over in a matter of months
but it turned into a fight to the bitter end. It is regarded as the first “total war” in which military and industrial resources and people were mobilised on a scale never before thought possible. Trench warfare created an endless demand for men, munitions and supplies
with often no apparent gains or victories. But by the beginning of 1918 those resources had been drained too much.
Demoralised German workers, suffering from food and fuel shortages, threatened revolution at home.
Read 20 tweets
8 Nov 18
@Roonomics @MartinSLewis An understanding of ‘money’ and personal finances will stand young people in good stead for navigating their adult lives.
We very much welcome a textbook for this age group.
@Roonomics @MartinSLewis It’s also important for our democracy, that young people grasp the basic principles of government finances and economics as they apply on a national level. This will stand them in good stead when it comes to making important decisions at the ballot box.
@Roonomics @MartinSLewis Modern Monetary Theory #MMT describes how our economy works today.
It is a lens for viewing currency operations and government finances. It forms a framework that policy makers can use to make best use of our resources and the public purse.
Read 4 tweets
7 Nov 18
The stocks and flows of public money from the public purse keep the economy healthy and fit for public purpose. #MMT
“Understand spending chains and you understand a fair chunk of Modern Monetary Theory.
When the government spends into the economy it initiates a sequence of financial flows in the non-government sector. The first recipient of the spending is likely to re-spend some or all of it”
“Subsequent recipients will do the same, and so on.
That’s a spending chain.

Two things stop the money being used indefinitely: tax and savings.

Most of the spending chains initiated by spending into the public sector result from spending on healthcare.”
Read 5 tweets
5 Nov 18
Professor Philip Alston, Special Rapporteur to the UN, today begins a two week fact finding mission of the U.K. to examine the government’s efforts to eradicate poverty.
To establish whether it is meeting its obligations under international human rights law.
A full itinerary of Professor Alston’s mission to visit government officials and campaigning groups has been made available to the general public.
The visit is intended to provide @Alston_UNSR with additional information on poverty & human rights in the UK.
Extensive input & research in advance of his visit has seen more than 300 submissions from people affected by poverty, civil groups, government officials and academics.
Read 10 tweets