Tag Archives: MMT

‘Europe has a problem and it is called Germany.’

Read this article.

Also in Finland it can be clearly observed that ‘households will not spend because they scared of becoming unemployed and try to minimise their outstanding debt obligations.’ Statistics Finland had on the one hand a note that showed private indebtedness is still increasing (which I referred to yesterday) but also a note that shows that the household’s saving rate seems to be increasing.

So what I am thinking, is: does e.g. the Finnish government actually believe in Ricardian Equivalence? Or does the ‘implied necessity’ of this kind of thinking help shrinking the welfare state, a goal of Liberals and Conservatives all over Europe?

Questions, questions…

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How to leave the Eurozone safely / Miten jätetään euroa?

A large exception: a post in Finnish and English. English first.

The New Economics Foundation just published a lecture by Warren Mosler, the banker/investor, who lines out how (in this case) Italy can safely leave the Euro. A fragment from the transcription, which gives a sense of the raw subversity of his talk (as in: nobody gets how money works):

Nobody needed the Euro the day before it was introduced. But as soon as they switched over and the Euro was needed for tax payment, now everybody needs Euro.

When people need money and they are looking for work to earn it, what do we call that? Unemployment. Unemployment is not people looking to volunteer at the hospital. It’s not about volunteers, it’s about people looking for paid work, they need the money. If nobody needed the money, there would be no unemployment problem.

Ja Suomeksi:

Warren Mosler, sijoittaja ja pankkiiri, piti Italiassa luennon siitä, mitä raha on, miksi sitä on ja miten tässä tapauksessa Italia voisi jättää eurojärjestelmän.  Luento oli New Economics Foundationin blogilla. Pieni pätkä, josta ilmenee vähän luennon esimakua ja kuinka subversiivinen Moslerin ajatukset ovat (ts. miten ei kukaan ymmärrä mitä raha on yms):

Ei kukaan tarvinnut Euro päivää ennen kuin se otettiin käyttöön. Mutta heti kun vaihdettiin Euroon ja Euro tarvittiin verojen maksamiseen, nyt kaikki tarvitsee Euroja.

Kun ihmiset tarvitsevat rahaa ja he etsivät työtä ansaitakseen sen, mitä kutsumme tuota? Työttömyyttä. Työttömyys ei ole, että ihmiset haluavat tehdä vapaaehtoistyötä sairaalassa. Kyse ei ole vapaaehtoista, kyseessä on  ihmisiä, jotka etsivät palkkatyötä, [koska] he tarvitsevat rahaa. Jos ei kukaan tarvitsi rahaa, ei olisi työttömyysongelmaa.

Suosittelen kuuntelemaan luentoa tai lukea tekstiä.

EconoMonitor : Great Leap Forward » MMT AND THE EURO: Are Current Account Imbalances to Blame for the Euro Disaster? Part 1

http://www.economonitor.com/lrwray/2012/07/12/mmt-and-the-euro-are-current-account-imbalances-to-blame-for-the-euro-disaster-part-1/

Companion to the other link. Please read part two as well.

EconoMonitor : Great Leap Forward » MMT, THE EURO, AND THE ROAD TO RECOVERY: Interview with L. Randall Wray

http://www.economonitor.com/lrwray/2013/02/09/mmt-the-euro-and-the-road-to-recovery-interview-with-l-randall-wray/

A bit older but still relevant.