Ashish Barua आशिष बरूआ #MMT From INDIA🇮🇳 📈📊🍉 Profile picture
Learning Modern Monetary Theory every day. #MMT follower(STAUNCH!) #JobGuarantee #GreenNewDeal #FiscalPolicy #FreePalestine I AM PRO-#PALESTINE 🇵🇸😊👍
Singh M.K. Profile picture 1 subscribed
Jan 7, 2022 5 tweets 2 min read
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!
Jan 7, 2022 5 tweets 1 min read
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
Jan 4, 2020 10 tweets 30 min read
@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 @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?