Albistea: The Premonitory Five: Godley, Wray, Forstater, Mosler and Bell1.
Halaber, ikus Eurolandia’s original sin2.
“… analytical warnings of the European Union’s current debt crisis given separately a decade or more ago by five economists: Wynne Godley (1997), L. Randall Wray (1998), Mathew Forstater (1999), Warren Mosler (2001) and Stephanie Bell (2002).”
Bibliografia:
Bell, S. 2002. “Convergence Going In, Divergence Coming Out: Default Risk Premiums and the Prospects for Stabilization in the Eurozone.” Working Paper No. 24. Kansas City, Mo.: Center for Full Employment and Price Stability. April.
Forstater, M. 1999. “The European Economic and Monetary Union: Introduction.” Eastern Economic Journal 25, no. 1 (Winter).
Godley, W. 1997. “Curried Emu—The Meal that Fails to Nourish.” Observer (London), August 31.
Mosler, W. 2001. “Rites of Passage.” Epicoalition.org, May 1.
Wray, L. R. 1998. Understanding Modern Money: The Key to Full Employment and Price Stability. Northampton, Mass.: Edward Elgar Publishing.
Twitterra:
Bob Gorman @BobGorman8791 uzt. 19 Wauwatosa, WI
.@billy_blog @GrkStav @LevyEcon @StephanieKelton @ptcherneva replace TINA (There Is No Alternative) with TIA (There Is Alternative) = #MMT
joseba says:
Randall Wray-ren MMT: A Doubly Retrospective Analysis
http://neweconomicperspectives.org/2011/12/mmt-doubly-retrospective-analysis.html
“Warren Mosler, Bill Mitchell, and I used to meet up just about every year to count the number of people in the world who understood what we were talking about. I remember just a few years ago at Vail, Colorado, we finally got beyond the fingers on two hands.
Now try googling MMT—millions of hits and what is more surprising is that there are blog sites all over the web devoted to MMT, run by people I’ve never heard of. That is a good thing, of course, even if they do not always get things exactly right.
And we’ve got Paul Krugman and Brad DeLong trying to explain what is wrong with MMT even as they “borrow” our ideas. And policy makers including Bernanke spouting off about government spending using keystrokes, sounding like good MMTers. Without attribution.
(…)
And then there was this strange profane guy named Bill Mitchell (…)
And one other guy stood out—a hedge fund manager named Warren Mosler who was continually pushing two things. First there was something he called soft currency economics. It sounded to me like good old Keynesian economics from the Treatise on Money, which followed Knapp’s state theory of money.
And then there was the job guarantee, which I immediately recognized as Minsky’s employer of last resort. I can’t remember what Warren called it but Bill called it BSE, buffer stock employment.
I had never thought of it that way, but Bill’s analogy to commodities price stabilization schemes added an important component that was missing from Minsky: use full employment to stabilize prices. With that we turned the Phillips Curve on its head: unemployment and inflation do not represent a trade-off, rather, full employment and price stability go hand in hand.
(…)
What Warren also added was a much deeper understanding of bank reserves and treasury bonds. I came at this from the PK endogenous money, horizontal reserves view of Basil Moore. There’s nothing seriously wrong with that, but it never understood why a sovereign government would sell bonds. Warren explained bond sales as a reserve drain, and lightbulbs went off. Exactly right: government sells bonds to hit the overnight interest rate target.
I think it was Mat Forstater who brought the final piece of the puzzle: Lerner’s functional finance approach. I don’t think the basic conclusions were new to any of us, but it was nice to find that a rather mainstream economist reached the same conclusion in the 1940s. Affordability is never a proper concern of a sovereign government.
Soon Warren, Bill and I were having discussions off the PKT list.
(…) then he [Molser] invited me to his conference at Bretton Woods in 1996, where I got to help push MMT onto his hedge fund friends. We began to discuss a bigger project, leading to the creation of CFEPS, which eventually ended up at UMKC with Mat joining and later Stephanie Bell/Kelton.
(…) While the academic journals and the policy makers and the mainstream press could mostly ignore us, the blogosphere was wide open to new ideas.
(…) What I want to do today is to argue that both the left and the right as well as economists and policymakers across the political spectrum fail to recognize that money is a public monopoly.”