Description Of Cryptocurrencies Using SNA

28 December 2013

In India – at least a while ago – they were many tickers trading on the stock exchanges with no income and in some cases with no office whatsoever! Why would anyone incorporate such a thing? For two – illegal – reasons: first the IPO of the company gets the money in – which makes […]


Happy Holidays

24 December 2013

Here’s wishing the readers of this blog a happy holiday break.  via hallmark.com I can never repeat this often enough – always remember: The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists. – Joan Robinson, 1955, “Marx, Marshall […]


Good Reference On Wage-Led Growth

23 December 2013

An excellent discussion on wage-led economic growth is a paper by Marc Lavoie and Engelbert Stockhammer titled Wage-led Growth: Concept, Theories And Policies which appears in the recently released book Wage-Led Growth: An Equitable Strategy For Economic Recovery (Palgrave Macmillan book page) From the article: … The advocacy of a wage-led economic strategy has a long history. […]


Underconsumption And The Rate Of Saving

21 December 2013

It is sometimes said that capitalists consume a lot and the theory of underconsumption fails. For example, Federal Reserve paper (h/t Winterspeak) Disentangling the Wealth Effect: A Cohort Analysis of Household Saving in the 1990s – although not suggesting a failure of underconsumption – says that in the ’90s, personal saving rate fell a lot due wealth effects […]


Strange Claims About KfW

4 December 2013

Earlier, I had two posts on this but now these have been merged into one.  Chartalists again! This blog post The fiscal role of the KfW – Part 1 by Bill Mitchell of Australia makes the most exorbitant claims about an institution called KfW and the government of Germany. Bill Mitchell claims: It is a major […]


Endogeneity Of Budget Deficits

3 December 2013

In this New Economic Perspectives post Randy Wray and Eric Tymoigne confuse accounting identities with behaviour. In a context, the bloggers claim: … Only a government deficit induced by fiscal policy leads to net saving. where “net saving” is saving net of investment. This posits a one-way causality of the sectoral balances accounting identity S […]


QE: Excess Money?

21 November 2013

[This is further to my previous posts Central Bank LSAP: Is The Money Stock Supply-Determined Or Demand-Determined? and On Effects Of QE.] Central bank asset purchases or LSAPs increase the stock of money aggregates compared to the counterfactual when there is no QE. Is there an excess of money? These are two different things. The notion of “excess […]


Central Bank LSAP: Is The Money Stock Supply-Determined Or Demand-Determined?

20 November 2013

The blog Fictional Reserve Barking … Against Fictions And Other Tall Tales has a nice post titled: On the (ir)relevance of the money multiplier model: The Fed view. In the post, the blogger Circuit quotes Robert Hetzel who says: Starting in mid-December 2008 when the FOMC lowered its funds-rate target to near zero with payment of interest […]


John Maynard Keynes: Life, Ideas, Legacy

7 November 2013

Described as “Award-winning documentary about Keynes by Professor Mark Blaug, which received a Silver Medal at the New York Film and Television Festival circa 1988.” on the University Of Cambridge page of the video: There’s also a book by Mark Blaug by the same title. (h/t Louis-Philippe Rochon and Anas Abd Jalil on Facebook)


Happy Diwali

2 November 2013

picture via bluemountain.com James Tobin’s papers are very interesting. I have a special liking for him even though he sometimes said strange things and used a lot of neoclassical analysis. His asset allocation theory is one of the most interesting things in monetary economics. I came across this paper from his book Essays In Economics – […]