Дата публикации: 2018-05-27 17:05
A monetary base is the total amount of a currency that is either in general circulation in the hands of the public or in the commercial bank deposits held in the central bank''s reserves. This measure of the money supply typically only includes the most liquid currencies it is also known as the "money base."
Floating regimes offer countries the advantage of maintaining an independent monetary policy. In such countries, the foreign exchange and other financial markets must be deep enough to absorb shocks without large exchange rate changes. Also, financial instruments must be available to hedge the risks posed by a fluctuating exchange rate. Almost all advanced economies have floating regimes, as do most large emerging market countries.
No, when we run a surplus, we have to sell our securities to the Fed (cash in our savings accounts at the Fed) to get the money to pay our taxes, and our net financial assets and savings go down by the amount of the surplus.
8775 Firstly, what MMT states, and specifically the way it states it, leads anyone who believes it to realize deficits are not only not bad, but necessary, and that massive government spending is imperative for a healthy economy. 8776
True, theoretically these are 8775 self imposed 8776 as a government can simply make up new laws where this is literally the case.
I have not found those arguments in your piece. Nor have I found them in the writings of others. I 8767 ll keep looking. In the meantime, I 8767 ll keep viewing and assessing the world through an MMT lens.
And whether one considers the federal reserve part of the federal government or not, its much hailed cornerstone is its independence. Across the world, countries have enshrined into law and believe as a holy tenant of sound economic policy, the need for an 8775 independent 8776 monetary policy. The idea is that upcoming election or not, recession or boom, the sitting administration cannot force the hand of the central bank and use its monetary tools for its short term political goals. Put simply, it cannot spend as much as it wants, nor can it create any money at all.
Notice that Mosler introduces the irrelevant taxes here (as if in the previous example there was no taxes). Now, I will agree, your savings will go down by the amount of the taxes you had to pay, but certainly not by the amount of money you got by selling your treasury security! (unless there was an unmentioned 655% sales tax on selling T securities in the example).
Or a bond buyer, which is what happened in World War II. Unemployment was almost non-existent and people were making lots of money both in the military and in the factories, but consumer goods were rationed or otherwise heavily limited in availability, so people spent most of their income on paying off debt and buying war bonds.
In the paragraph you quote I was also conveying simply that what government 8775 provides 8776 is not ultimately free and out of thin air (or otherwise I 8767 d be all for it) like the currency it can issue. Something people very often forget. Anything it provides to its population must be taken from the same population. And some believers in MMT can equate the issuance of fiat currency with the ability to provide real goods and services 8775 out of thin air 8776 .
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