{"id":10843,"date":"2014-06-27T14:31:51","date_gmt":"2014-06-27T18:31:51","guid":{"rendered":"http:\/\/multiplier-effect.org\/?p=10843"},"modified":"2014-06-27T14:34:09","modified_gmt":"2014-06-27T18:34:09","slug":"end-of-week-links-6272014","status":"publish","type":"post","link":"https:\/\/blogs.bard.edu\/multiplier-effect\/end-of-week-links-6272014\/","title":{"rendered":"End of Week Links 6\/27\/2014"},"content":{"rendered":"

Ann Pettifor, “Out of thin air \u2014\u00a0Why banks must be allowed to create money<\/a>”<\/p>\n

“In his regular\u00a0column, Martin Wolf called for<\/a> private banks to be stripped of their power\u00a0to create money. Wolf\u2019s proposals are radical, and would give a small committee \u2013\u00a0independent of the state \u2013 a monopoly on money creation.\u00a0… Furthermore, Wolf argues, private commercial banks would only be\u00a0allowed to:\u00a0\u2018\u2026loan money actually invested by customers. They would be stopped from\u00a0<\/em>creating such accounts out of thin air and so would become the intermediaries that\u00a0<\/em>many wrongly believe they now are.\u2019<\/em><\/p>\n

Because I am a vocal critic of the private finance sector, many assume\u00a0that I would agree with Wolf and Positive Money on nationalising money\u00a0creation. Not so. I have no objection to the nationalisation of banks. But nationalising\u00a0banks is a different proposition from nationalising (and centralising)\u00a0money creation in the hands of a small \u2018independent committee\u2019. Indeed,\u00a0the notion to my mind is preposterous. It is an approach reminiscent of\u00a0the misguided and failed monetarist policy prescriptions for controlling the\u00a0money supply in the 1980s. Second, the proposal that only money already saved should be made\u00a0available for lending assumes that money exists as a consequence of\u00a0economic activity, and equals savings. But that is to get things the wrong\u00a0way around.”<\/p><\/blockquote>\n

Related<\/em>: Jan Kregel, “Minsky and the Narrow Banking Proposal: No Solution for Financial Reform<\/a>”<\/p>\n

Jayati Ghosh, “Locking Out Financial Regulation<\/a>”<\/p>\n

“This agreement [the Trade in Services Agreement (TISA)] is apparently supposed to be \u201cclassified\u201d information \u2013 in other words, secret and unknown to the public that will be affected by it \u2013 for a full five years after it … enters into force or the negotiations are terminated<\/em>!<\/p>\n

That an international treaty that has binding and enforceable obligations can be treated as secret for five years after<\/em> it comes into force is not only bizarre but almost unthinkable. The need for such secrecy would be inexplicable even if such agreements were actually in the interests of people whose governments are involved in such negotiations. That secrecy is sought would on its own be reason for concern, but the little that has been leaked out of the state of the negotiations suggests even more reasons for alarm, especially because such a deal would have far-reaching implications for financial stability and adversely affect everyone in the world.”<\/p><\/blockquote>\n

J. W. Mason, “Where Do Interest Rates Come From?<\/a>”<\/p>\n

“What determines the level of interest rates? It seems like a simple question, but I don’t think economics \u2014\u00a0orthodox or heterodox \u2014\u00a0has an adequate answer.”<\/p><\/blockquote>\n

Noah Smith, “What I learned in econ grad school<\/a>”<\/p>\n

“… this was back before the financial crisis, at the tail end of the unfortunately named “Great Moderation.” When the big crisis happened, I quickly realized that nothing I had learned in my first-year course could help me explain what I was seeing on the news. Given my dim view of the standards of verification and usefulness to which the theories I knew had been subjected, I was not surprised.”<\/p><\/blockquote>\n

Eric Schliesser, “Milton Piketty<\/a>”<\/p>\n

“Piketty is the true heir<\/em> of Milton Friedman. This claim might seem perverse if one focuses on policy. But if one looks at (a) methodology, and, crucially, (b) the conception of what economics might be about, ultimately, then Piketty’s book is an attempt to return economics to an approach that was never really dominant, but that can be book-ended between Adam Smith’s Digression on Silver (or Hume’s population essay) and Friedman’s (1963) Monetary History<\/em>.”<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Ann Pettifor, “Out of thin air \u2014\u00a0Why banks must be allowed to create money” “In his regular\u00a0column, Martin Wolf called for private banks to be stripped of their power\u00a0to create money. Wolf\u2019s proposals are radical, and would give a small committee \u2013\u00a0independent of the state \u2013 a monopoly on money creation.\u00a0… Furthermore, Wolf argues, private […]<\/p>\n","protected":false},"author":202,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,111],"tags":[408,1134,154,737,713,407,869,923],"class_list":["post-10843","post","type-post","status-publish","format-standard","hentry","category-financial-crisis","category-financial-reform","tag-chicago-plan","tag-financial-reform","tag-interest-rates","tag-milton-friedman","tag-money-creation","tag-narrow-banking","tag-piketty","tag-trade-in-services-agreement"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts\/10843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/users\/202"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/comments?post=10843"}],"version-history":[{"count":11,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts\/10843\/revisions"}],"predecessor-version":[{"id":10857,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts\/10843\/revisions\/10857"}],"wp:attachment":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/media?parent=10843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/categories?post=10843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/tags?post=10843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}