Two career economists (not the ones minted last week on twitter) explain what happened at SVB, and what could be done.
Their books are delightful reads, but this post creates clarity in 5 minutes. Share and enjoy.
https://stephaniekelton.substack.com/p/magical-thinking-monetary-thinking?post_id=1091874
Once you read the post, if you want two great follow ups, their books are fresh, clear, and in my opinion, worth reading for every citizen:
- Making Money Work for Us: How MMT Can Save America https://a.co/d/9xs2GZ6
- Deficit Myth https://a.co/d/gEWEq6F
@Migueldeicaza Their take on taxes doesn't seem to be that radical though?
Weren't taxes invented to ensure that for war efforts in remote countries your soldiers are well-fed? You conquer the land and you extort taxes in *your currency* from the farmers which forces them to accept (bad) trades from soldiers buying food from them since that was the only way to get money of that currency?
@ljrk it is a key component of MMT: it both drives demand for your currency, and is the tool to reduce inflation - by removing it from circulation.
It is option 2. I did send her a message explaining that it took me forever to gloss over the expression “fiscal policy” and understand it meant expenses+taxes
Miguel de Icaza ᯅ🍉
lj·rk