Emeritus Prof Christopher May

As their popularity rises the Green Party of England & Wales will see its policies gain more attention & criticism in the media.

The FT has run a long analysis of various policies this morning, suggesting that while popular, they may be under-estimating the need to find ways to convince bond-market actors their economic policies are 'credible'.

If the GPEW is not already reaching out to calm such actors, they might want to think about quietly (and pragmatcally) doing so.

#Greens #economics

Mar 9 at 6:36amWeb
Show threadMartin RundkvistMar 9
@ChrisMayLA6
Maybe bond-market actors do not have our best interests at heart.
Show threadEmeritus Prof Christopher MayMar 9

@mrundkvist

I don't doubt that, but sadly their views & actions have considerable consequence that at the very least needs to be ameliorated in some way if the GPEW is ever to push their (to me very welcome) economic agenda forward

Show threadThe Sleight Doctor 🃏🍉Mar 9
@mrundkvist @ChrisMayLA6 I wouldn't be the first to point out that they don't even understand macroeconomics! A currency-issuing government can always cover the interest on bonds, can never become insolvent, and - this is the kicker - does not even need to "borrow" from markets in order to spend. If the UK can spend money into existence for quantitative easing (QE) or Covid measures, then it can do so for any other purpose. 🤷🏻‍♂️
Show threadEmeritus Prof Christopher MayMar 9

@ApostateEnglishman @mrundkvist

However, where the monetarists are right is that this is inflationary.... in the UK this is hidden by the impact of QE on asset prices (see the housing market) being left out of the metrics for inflation.... I'm not against 'spending money into existence' but it needs to be managed to ensure the expansion in the money supply is directed into productive investment not inflating (rentier) assets.... in this sense Reeves 'new' fiscal rules help (if she'd use them)

Show threadThe Sleight Doctor 🃏🍉Mar 9
@ChrisMayLA6 @mrundkvist For once, we somewhat disagree! The monetarist view that expanding the money supply is always inflationary is overly simplistic: in order for there to be runaway inflation, there has to be too many pounds sterling chasing too fews goods and services. In other words, where there is unused 👉🏼productive capacity👈🏼 in your economy, national spending can't add to inflation. If we have the raw materials, willing and able workforce, ecological space etc., we can always afford it.
Show threadEmeritus Prof Christopher MayMar 9

@ApostateEnglishman @mrundkvist

I'm not sure we are disagreeing; I think the monetarist point is right where there is now dynamic of advance for the economy & in the UK that was channelled into property.... but your point & my last point are parallel - I would see 'productive investment' as the driving of the Green Transition & infrastructure investment - I agree the monetarist point it simplified but it is not (entirely) without merit when linked with other analytical approaches in he round

Show threadNeil MoffattMar 9
@ApostateEnglishman But ever the right-wing kowtowing media painting simple faux-pictures.
Show threadNeil MoffattMar 9
@ApostateEnglishman @mrundkvist @ChrisMayLA6 And there is the factor of being a sovereign nation.
Show threadSteve WoodsMar 9

@ChrisMayLA6 Look out for the smears in the media if the Greens look like getting too popular.

Remember what they did to Corbyn with the help of the #RedTories.

Show threadEmeritus Prof Christopher MayMar 9

@wood5y

Indeed.... I'm expecting that to follow on from the FT's 'reasoned' engagement with their economic policies

Show threadBruno NicolettiMar 9
@ChrisMayLA6 Have they run a similar analysis on whatever Reform happen to be spouting at the moment?
Show threadEmeritus Prof Christopher MayMar 9

@bjn

The FT has in the past, yes!

Show threadRegMar 9

@ChrisMayLA6

The West as a whole is long-overdue a public debate on the incestuous relationship between politics and finance and the degree to which our democratic choices can be compromised by embedded financial systems.

Other ways of working are clearly possible, if not necessarily easy to navigate, but too many politicians have spent too long accepting the TINA mantra and claiming to be grownups for supporting a broken status quo.

Show threadEmeritus Prof Christopher MayMar 9

@ReggieHere

Agreed; as not infrequently said here

Show threadRegMar 9

@ChrisMayLA6

Yes, one of your regular themes thankfully.

Show threadbeemohMar 9

@ChrisMayLA6 And this is why I pushed for the P2P Lending approach.

Admittedly it's probably not large enough a market to fully neuter the bond markets as a threat, but you've got to start it somewhere, I guess.

Show threadEmeritus Prof Christopher MayMar 9

@beemoh

Yes, some time ago I proposed a housing bond through the NS&I to fund social housing... which would also have the advantage of by-passing the bond market (albeit only for one budget line)

Show threadbeemohMar 9
@ChrisMayLA6 One budget line might be good enough- a less ambitious target to reflect the real size of the P2P market while still being enough to put the spooks up the Bond Market as to what'll happen if they don't behave.