Money and Banking (Part 2 – Central bank balance sheet and immediate implications)
Part 1 reviewed basic balance-sheet mechanics. This post begins to apply them to the Federal Reserve System (Fed).
Part 1 reviewed basic balance-sheet mechanics. This post begins to apply them to the Federal Reserve System (Fed).
If you cannot put your reasoning in terms of a balance sheet, there is a problem in your logic.
A declaration of war is a legal framework that sets in motion a process of “mobilization” in which the national government directs real resources—labor, engineering expertise, technology, material—toward the goal of defeating an enemy threat.
Today’s “populists,”—both right and left—appear to believe that virtually anything the U.S. federal government does is an oppression of individual liberty, private rights and local control of resources and norms. Setting aside adolescent posturing—like refusing to wear face masks at the height of a national pandemic, or the will to anarchy generated by racist fears—there …
Is the Federal Reserve an almighty-like “creature” or rather extremely limited in its essential operations? L. Randall Wray, an expert on monetary policy, answers questions with regard to the Fed and central banks in general.
Critics of MMT often say, “but it’s only ‘chartalism’”—as if chartalism, itself, were a discredited explanation of reality that inherently discredits Modern Money Theory.
Beardsley Ruml wrote in 1946 that taxes for revenue are obsolete. So what ARE they for?
Deficit hawks, like dive-bombing kamikazes, are out now again, circling the battleship of our collective efforts to save ourselves. What can we do?
This may sound like the plot for a Dickensian novel but, in fact, it is a precise description of what I think of as rethinking the reality of modern fiat money—a rethinking that enables collective society to achieve the full potential of its profit-making and not-profit making endeavors.