@RichardJMurphy Hi Richard!
I think private money creation makes Donald Trump, oil & Venezuela make sense.
Tell me what you think of this analysis!
https://youtube.com/shorts/54x3b3LkgE8
#venezuela #oil #financialisation #mmt #postkeynesianism #debt #trump #economy #privatebanking
Wherever you look, alarm bells ring about government #debt seemingly spinning out of control.
But is it really? Or might, as so often, some political agenda setting be at work here?
https://jakobsteffen.substack.com/p/is-government-debt-really-out-of
The notion of the state crowding out the private sector by its #deficitspending is currently trending. On my blog, I point out why it's a fallacy:
#economics #PostKeynesianism #PKE #debt #rates
https://jakobsteffen.substack.com/p/the-nonsense-of-crowding-out
"In a work obviously targeted, like Shaikh’s, at graduate students in economics, the authors approach their objective via a critique of orthodox growth theory and two types of growth models. One, the post-Keynesian Harrod-Domar model, is described as a knife-edge model, as any deviation from a balanced growth path sets off an inexorable process of either inflationary expansion (if investment is above the ‘warranted rate’) or deflationary contraction (if below) – unless states intervene to stabilize the system. The ‘neoclassical’ Solow model, constructed in response to the unrealistic instability of the post-Keynesian model, depended on the ludicrously unrealistic assumptions of perfect competition. It was later combined with the problematic concept of ‘total factor productivity’, and suffered from the notorious ‘aggregation problem’ of measuring the total stock of capital.
After concisely explaining the deficiencies of both models, the authors turn to classical political economy, including Marx, for an alternative. In summary, they counterpose Shaikh’s concept of ‘real competition’ to both neoclassical perfect competition theory and theories of monopoly capital. They explain how aggregation problems can be overcome using a labour theory of value, with estimates of socially-necessary labor-time for the elements of constant capital."
#Economics #PoliticalEconomy #EconomicGrowth #Neoclassicism #PostKeynesianism #Marx #Marxism #LongCycles
The primary objective of Economic Growth and Long Cycles, to quote a summary from the final chapter, is ‘to construct a growth-cum-cycles model inspired by the Classical and Marxist Political Economy tradition’ (249). There are those who reject any identification of Marx with the classical tradition, works which, in this respect and others, are indebted to Anwar Shaikh’s magnum opus Capitalism. But this book, along with Shaikh’s, should become compulsory reading for anyone engaged with the now rather unfashionable quantitative dimension of Marx’s Capital. The model is most innovative in specifying the connections between long cycles (or ‘long waves’) and…
It has been stated often aready; but it cannot be repeated often enough. I'll try to give it a particularly succinct edge: The Western outlook on life, for all its cult of individualism, is about power: Who holds it over whom or what, and by what means? 1/
#Japan's plight of low money wages & low #inflation is down to #unionisation levels next to zero and cultural aspects of total deference to the employer, no matter the level of #unemployment.
Toni Aittoniemi
Jakob Steffen
Miguel Afonso Caetano