heteconomist – Page 10 – mmt & social possibilities

Economics

Institutions, Monetary Operations and a Demand-Led Global Economy

Macroeconomic controversies usually center on causation. Two questions of significance for policymaking concern output and growth: Is output demand or supply determined? Is economic growth demand or supply led? If demand is the driver of output and growth, there will…

peterc
13 January 2017

Economics

Is Public-Sector Labor ‘Productive’ in a State Money System?

An issue that troubles me in relating Marx to Modern Monetary Theory (MMT) is whether to apply the ‘productive/unproductive labor’ distinction to production that is monetized in a state money. Although I am not especially enamored of the distinction in…

peterc
3 January 2017

Economics

We’re Wealthier Now, We Can’t Afford That Anymore

Have you noticed how things we used to be able to do are beyond our capabilities now? We finally reached a point where we were able to provide free university education. Then we grew wealthier, and some countries couldn’t afford…

peterc
19 December 2016

Future Society

Not Investing in Infrastructure, Culture and Knowledge IS the Burden We Place on Future Generations

If we were to believe most politicians, we’d be under the mistaken impression that government not investing today does future generations a favor. Leaving communications systems underdeveloped, road and transport networks crumbling, education and public health systems deteriorating, our cultural…

peterc
15 December 2016

Economics

The Monetary Circuit & Compatibility of Marx, Kalecki and Keynesian Macro

There appears to be a considerable degree of compatibility between Marx and various Kalecki- and Keynes-influenced approaches to macroeconomics. Compatibility, of course, does not imply that all these theoretical approaches stand or fall together. It simply suggests, to the extent…

peterc
12 December 2016

Short & Simple

Short & Simple 4 – Total Spending Equals Total Income

We saw in parts 2 and 3 that funds initially enter the economy through either government spending or bank lending. In the future, we will take a closer look at these activities. For now, it is enough to understand that…

peterc
10 December 2016

Short & Simple

Short & Simple 3 – Safeguarding Monetary Institutions and Banking

It was seen in parts 1 and 2 that government, as our collective agent, is able to use its currency to attract some workers and resources to the public sector. This enables it to carry out important functions. One of…

peterc
8 December 2016

Short & Simple

Short & Simple 2 – Establishing a National Currency

For government to carry out its functions, it needs to employ some people and obtain various resources. Most national governments coordinate the division of resources between public and private use through the operation of a currency that they themselves issue.…

peterc
3 December 2016

Short & Simple

Short & Simple 1 – Government as a Means of Cooperation

Many activities require cooperation at the society-wide level. As a community, we need to agree upon a set of rules and regulations, and arrange for their supervision and enforcement. Questions that arise include:

peterc
1 December 2016

Economics

Value Creation in the Context of Demand Determined Output and Employment

This post concerns total value creation (Marx) in a context of demand-determined output and employment (Kalecki, Keynes). A ‘macro rule’ employed by Marx seems central to this connection. Marx held that, in real terms, an hour of average living labor…

peterc
29 November 2016