Is MMT “America First” Economics?

By Gerald Epstein, Modern Money Theory (MMT) has recently gained a remarkable amount of attention. This has stemmed largely from the “shout-outs” it has received from prominent progressive politicians such as Alexandria Ocasio-Cortez. Its recent appearances in the news and social media have also drawn a variety of criticisms from economists of different stripes. Though … More Is MMT “America First” Economics?

The French Economy, European Authorities, and the IMF: “Structural Reform” or Increasing Employment?

By Mark Weisbrot, Lara Merling, Alexander Main, and David Rosnick: This paper looks at two competing views among economists and other observers, of how the French economy can overcome mass unemployment and have a more robust recovery. One view sees the unemployment and economic stagnation of the past decade as overwhelmingly structural. An alternative narrative, … More The French Economy, European Authorities, and the IMF: “Structural Reform” or Increasing Employment?

The Rise of the American Bond-holding Class

By Sandy Brian Hager, The history of class conflict, power and inequality in the United States has always been intimately bound up with the public debt. Already during the War of Independence (1775-‘83), revolutionary forces accumulated debts of $54 million, and a difficult task for the first Secretary of the Treasury, Alexander Hamilton, was to … More The Rise of the American Bond-holding Class

New Book by Steve Keen: Can We Avoid Another Financial Crisis?

From Polity (to be released April 2017): The Financial Crash that convulsed the world in 2008 had cataclysmic effects on the global economy, and took conventional economists completely by surprise. Many leading commentators, taken in by the hubris of economics, declared shortly before the crisis that the magical recipe for eternal stability had been found. … More New Book by Steve Keen: Can We Avoid Another Financial Crisis?

EPI: A Social Democratic Public Investment Agenda for the USA

By Josh Bivens and Hunter Blair A welcome theme in the 2016 presidential election was a commitment to increasing public investment. Both candidates in the Democratic primary put forward detailed plans for such investments, and in the general election contest, Donald Trump generally criticized Hillary Clinton’s five-year, $275 billion plan for infrastructure as too small. … More EPI: A Social Democratic Public Investment Agenda for the USA

New Working Paper – Explaining the Euro crisis: Current account imbalances, credit booms and economic policy in different economic paradigms

By Engelbert Stockhammer, Collin Constantine, & Severin Reissl From the abstract: The paper proposes a post-Keynesian analysis of the Eurozone crisis and contrasts interpretations inspired by New Keynesian, New Classical, and Marxist theories. The origin of the crisis is the emergence of a debt-driven and an export-driven growth model, which resulted in a rapid increase … More New Working Paper – Explaining the Euro crisis: Current account imbalances, credit booms and economic policy in different economic paradigms

J.W. Mason on functional vs. conventional finance

By J.W. Mason, One pole of current debates about U.S. fiscal policy is occupied by the “functional finance” position—the view usually traced back to the late economist Abba Lerner—that a government’s budget balance can be set at whatever level is needed to stabilize aggregate demand, without worrying about the level of government debt. At the other … More J.W. Mason on functional vs. conventional finance