Miguel de Icaza α―…πŸ‰Mar 19, 2023

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

Magical Monetary Thinking at the Fed Killed SVB

By L. Randall Wray and Stephanie Kelton

The Lens
Show threadMiguel de Icaza α―…πŸ‰Mar 19, 2023

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

Show threadLaurent SansonettiMar 19, 2023
@Migueldeicaza The second one was an eye opener for me, but it scared me as living in the eurozone... I do wonder what the author thinks of what could be done over here
Show threadMiguel de Icaza α―…πŸ‰Mar 19, 2023
@lrz they have covered this in the past. It is complicated due to the central bank being controlled by folks clinging to primitive theories- just like Powell is. It’s really modern understanding vs β€œif it worked in the 60’s it can work now”
Show threadLaurent Sansonetti
@Migueldeicaza I have read a few Piketty columns in the paper and I can see that there is some common ground, I just wonder if we could fully implement MMT in a region where state members no longer have control over their central banks... I'm guessing perhaps if everyone agrees to it :)
Mar 20, 2023 at 5:06pmWeb
Show threadMiguel de Icaza α―…πŸ‰Mar 20, 2023

@lrz I think it is possible, but will require the citizens to be informed about the spectrum of options, and elect/convince their representatives towards policy changes that could put them on a better path.

Even if we can do it here, generally, it is not embraced yet.