heteconomist – Page 7 – mmt & social possibilities

Economics

On Estimating the Monetary Expression of Labor Time in a Temporal Framework

When Marx’s theory of value is interpreted in a simultaneist way, it is relatively easy to calculate the ‘monetary expression of labor time’ (or MELT). This is true, at least, when the MELT is defined as the money value created…

peterc
23 October 2017

Job & Income Guarantee

The Income-Expenditure Model with a Job Guarantee

Under a job guarantee, there would be a standing job offer at a living wage for anyone who wanted such a position. Anyone without employment in the broader economy, or unhappy with their present employment, could opt for a position…

peterc
27 September 2017

Future Society

State Monies are Fundamental to Modern Monetary Economies

What is the most appropriate entry point to the study of a monetary economy in which government is currency issuer? Is it “the market”? Is it the definition: total spending equals total income? Is it real exchange? Real production? Is…

peterc
20 September 2017

Economics

Unfulfilled Potential

A monetarily sovereign government is one that issues its own currency and is the currency’s sole issuer. Ideally, it allows the currency’s value to float in relation to other currencies in foreign exchange markets, meaning its currency is not convertible…

peterc
9 September 2017

Short & Simple

Short & Simple 20 – Graphing the Income-Expenditure Model

It is easy to represent the ‘income-expenditure model’ in a graph. Some people find this helpful as a visual aid to understanding; others, not so much. For those who find graphs confusing, this post can safely be ignored. In terms…

peterc
5 September 2017

Short & Simple

Short & Simple 19 – Sectoral Balances in a Closed, Demand-Determined Economy

We have seen that the ‘income-expenditure model’ combines key macro identities (introduced in parts 7 and 15) with particular behavioral assumptions to provide a theory of income determination (considered in parts 16 and 18). The behavioral assumptions relate to causation.…

peterc
2 September 2017

Future Society

The Social Economy and the Potential Inherent in Currency Sovereignty

In any society, of whatever configuration, production at a given point in time is limited by certain ‘real’ (meaning non-monetary) factors. Notably, a society’s productive activity will always be limited by access to natural resources, the current state of its…

peterc
28 August 2017

Short & Simple

Short & Simple 18 – Income Determination in a Closed Economy

In this and upcoming parts of the series, we will look in a little more detail at the ‘income-expenditure model’. The foundations of the model have been introduced in the previous two parts (here and here).

peterc
26 August 2017

Short & Simple

Short & Simple 17 – A Notion of Macroeconomic Equilibrium

Equilibrium is conceived as a position of stability at which the plans of economic agents (for example, households and firms) are ‘realized’ or compatible, so that there is no incentive to alter current behavior.

peterc
23 August 2017

Short & Simple

Short & Simple 16 – The Expenditure Multiplier and Income Determination

We have seen that total spending equals total income (part 4). It has been argued that it is spending that creates (or determines) income (part 9). This can be inferred from the observation that some spending can occur independently of…

peterc
16 August 2017