Econ of Keynes, Kalecki, Minsky, Lerner, Godley, Knapp, Robinson amongst other things. Rethinking economics. My specialty is hindsight.
Jul 30, 2019 • 13 tweets • 3 min read
During 1930s Germany, rather than overt monetary financing, I prefer to think of Germany's actions as covert monetary financing. They were able to carry this out using two tools, Öffa bills, and later, Mefo bills.
So what were they and what do I mean by covert financing? 1/?
On the 1st of August 1930, the company Deutsch Gesellschaft für öffentliche Arbeiten AG was formed. The name roughly translated to "German Society for Public Works AG". However, this was actually a shell company, the purpose of which was to provide cover for the then 2/?
Dec 20, 2018 • 5 tweets • 2 min read
I saw it sir I saw it, the homeless level rise.
I saw it sir, I saw it, the light go from his eyes.
I saw it sir, I saw it, when Saudi missiles flew.
I saw it sir, I saw it, but what's a Con to do?
I saw it sir, I saw it, when winter took my Nan.
1/n
I saw it sir, I saw it, but preferred to kick the can.
I saw it sir, I saw it, the patients' cries of woe.
I saw it sir, I saw it, but people over dough?
I saw it sir, I saw it, the acid in his face.
I saw it sir, I saw it, no police to give chase.
2/n
Dec 14, 2018 • 5 tweets • 1 min read
Much is made of the fiscal multiplier, the concept that spending by government, or reductions in taxes (ideally of those who will spend that extra money rather than hoard it) will multiply spending, incomes and investment in the economy. 1/5
What is less discussed is that the opposite is also true. If you reduce spending or excessively tax those that would have spent that income, you create a negative multiplier effect where each £ of reduced gov spending results in lower spending, incomes and investment. 2/5
Jul 5, 2018 • 11 tweets • 3 min read
When discussing the #NHS in terms of privatisation I always think it's useful to equate what neoliberals and the private sector are doing to it as akin to a parasite infecting its host. The goal of a parasite isn't to kill its host but to extract energy to allow it to grow. 1/11
Ultimately the parasite seeks to reproduce and spread, much the same as private providers offering and supplying public services has spread and increased over the years. So what is the "energy" these parasites are extracting, and how do they know they won't kill their host? 2/11
Jun 22, 2018 • 7 tweets • 2 min read
For me the biggest insight regarding #MMT isn't that taxes aren't needed prior to spending but that bonds are for monetary policy not fiscal. The big scary borrowing everyone hammers on about so much is nothing more than savings opportunities with an interest rate set by the BoE.
This realisation opens up important discussions about whether these savings opportunities are being provided on a fair and equitable basis, or indeed, whether they should exist at all in this format given the misinterpretation of their function.
Mar 23, 2018 • 22 tweets • 5 min read
No problem, will take a while so bear with me.
As the issuer of the pound sterling, all £s originate via the UK government. In order for the UK to be able to claim back £s for taxes it must have spent those £s into existence by purchasing goods/services for use by gov. 1/?
In the UK our unit of account is denominated as the £, the US the $, Japan the ¥. Via the Treasury and Central Bank, the UK government controls and owns the unit of account. The £ is simply a measure of a relevant obligation/debt in relation to a good or service in that unit. 2/?
