17 Comments

Thank you for the continuous update on the inflation issue 🙏

Expand full comment

Always on the mark

Expand full comment

In regards to inflation, I believe MMT has a powerful solution to address it, although I don't know if I've seen it discussed before.

I've seen arguments for a jobs guarantee, which is cool, but what about the other side of that equation... the potential for guaranteed market competition to ensure price stability.

If we used money creation to hire the staff and fund the operating costs of a "Federal Business" whose sole purpose is to create supply to stabilize prices, then what you have is an entity that more or less looks like a privately owned business from the market's perspective (it sells goods and services), but it would not need profits to stay afloat, and therefore would never experience market pressures to raise their prices.

So if a business exists in the market that refuses to raise their prices, can't go out of business, and can't be bought out, then any other businesses competing with it would hesitate to raise their prices, otherwise they risk losing business to the Federal Business. If no one is raising their prices in the market, you have stopped inflation.

Couldn't that work? Maybe I'm missing something?

Expand full comment

Thanks for highlighting the UNCTAD statement on the global implications of US and UK interest rate policy. (I’d missed it.) A long history of fighting for the “periphery”.

Expand full comment

The hubris of some economists know no bounds. Thanks for providing the report. I’ll add it’s successful influence to my prayer intentions.

Expand full comment

Neither the UN nor any of their agencies should be in the business of suggesting how we manage our money supply.

Expand full comment

@StephanieKelton I recently read your book, an excellent read! I think it should be required for all economics students! I have a question, I realize the graphic in your is very simplified, but describes how the economy balances out and I wonder where all of the non-government surplus lives when we have such a high deficit?

For example, we currently have an enormous deficit, which I understand from your book how it can be taken care of in reality. However, where did all the $31 trillion go?

I assume a chunk of this is the tax cut from 2017. 

https://apnews.com/article/inflation-biden-prices-national-debt-congress-d85ae0ba056412286bef497422c34969

Expand full comment

I greatly appreciate the debate among Derrin, Paul, and John, below. This is the level of policy-relevant political/economic discussion we would have if the Blue states could divest themselves of the Red. Under the aegis of MMT.

Expand full comment