Category Archives: Macroeconomic policy

At Long Last the Government Can Borrow Straight From the Bank of England – As Modern Monetary Theory Has Always Suggested It Should

The UK embraces modern monetary theory….and perhaps hopes no one notices.

Bailout Shenanigans: Making 2008 Look Good?

The bailout bill looks shameless, even by Trump Administration standards.

Michael Hudson: A Debt Jubilee is the Only Way to Avoid a Depression

In the face of massive economic calamity caused by coronavirus, Michael Hudson argues a debt jubilee is the only way to avoid a depression.

IMF Refuses Aid to Venezuela in the Midst of the Coronavirus Crisis

The IMF dons its enforcement brass knuckles.

Coronavirus Means Zero Hour for the European Union

Germany’s long-standing practice of muscling the European Union to serve its own ends now risks dissolution and a banking system crisis.

Social Insurance in a Time of Pandemic: A Proposal for the Government to Act as Buyer of Last Resort

It’s not hard operationally for the government to counter economic fallout from the pandemic. The hard part is ideological baggage.

The Fed Backfires: Shock and Awe Rate Drop to 0%, Emergency Bond Buying Program Leads to Limit Down Drops in US Equity Futures as Real World Coronavirus Damage Worsens

The Fed just told everyone to assume the brace position.

How the COVID-19 Shock Is Different

Looking at COIVD-19 impacts.

After Bloody Day, Coronavirus Meltdown Continues. Big Danger: Italian and Eurobanks Are Set To Blow

So many coronavirus panics that a looming risk is getting little notice: implosion of Italy’s banks, a potential Credit Anstalt event.

MMT is a Political Problem: Part 1

How should MMT proponents advance their views?

Coronavirus Reveals the Cracks in Globalization

Coronavirus risks a series of shortages that can be mitigated only by bringing some production back home.

Coronavirus: Bracing for the Economic Shockwave

The coronavirus spread is setting up a nasty real economy-financial system contraction.

Secular Stagnation: Demand Is Indeed the Culprit

Economists’ bad medicine is a significant factor in our present stagnation.

STATEMENT: House Budget Committee, “Reexamining the economic costs of debt”, Nov 20, 2019

It is hard to imagine a scenario in which rising deficits and the debt ratio will create a financial crisis, lead to government insolvency, generate high inflation, or trigger an attack by bond vigilantes.