The last ten years have brought Knut Wicksell, a Swedish economist born in the 19th century, closer to the spotlight. His “Interest and Prices” (1898) should be understood as the birth of a new idea of how to explain monetary systems. (I have written about this elsewhere.) While some still pretend that Wicksell was a […]
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Das Bundesverfassungsgericht hat in seinem Urteil von heute mehreren Verfassungsbeschwerden gegen das Staatsanleihenkaufprogramm (Public Sector Purchase Programme – PSPP) stattgegeben.Die Beschlüsse der EZB zum Staatsanleihenkaufprogramm kompetenzwidrig seien kompetenzwidrig, da die Verhältnismäßigkeit nicht geprüft worden sei: Ein Programm zum Ankauf von Staatsanleihen wie das PSPP, das erhebliche wirtschaftspolitische Auswirkungen hat, setzt insbesondere voraus, dass das währungspolitische Ziel und […]
In today’s ruling, the Federal Constitutional Court upheld several constitutional complaints against the Public Sector Purchase Programme (PSPP), stating that the ECB’s decisions on the Public Sector Purchase Programme were incompetent, as the proportionality had not been assessed: A public sector purchase programme such as the PSPP, which has significant economic policy implications, requires in […]
Relatively unobserved by the media and experts, the establishment of the Pandemic Emergency Purchase Programme (PEPP) by the ECB has temporarily severely limited the power of the financial markets over national governments in the euro area. The challenge now is to make this permanent. The ECB’s PEPP is a programme for the purchase of public […]
Originally published June 9th, 2020 in German here, translated with http://www.DeepL.com/Translator (free version) This background article explains where the money for governments in the current crisis comes from and why, contrary to general expectations, the EU will probably not play a major role in this crisis. The Western states decided relatively late to largely shut […]
I have read a book review by Steven Pressman in the Journal of Post Keynesian Economics (JPKE). The book he reviewed is “Rethinking the theory of money, credit, and macroeconomics: A new statement for the twenty-first century” by John Smithin. I am sure the book is just as interesting as the book review, but I […]
The Guardian has published a question and invited other readers to answer it: The chancellor has borrowed an unprecedented amount of money. Who is lending it to him, and where did they get it?Sean Boyle, London The answer from Andrew, Richard and Neil is a genuine MMT answer and I recommend reading it. It was also […]
I have been re-reading the Functional Finance and the Federal Debt paper this afternoon. There are crucial differences between Functional Finance Theory (FFT) and Modern Monetary Theory (MMT). Therefore, it (MMT) was not all in Lerner. Let me comment on FTT from an MMT perspective. source: https://de.wikipedia.org/wiki/Abba_P._Lerner#/media/Datei:Abba_Lerner.jpg The start of the paper is very promising: […]
Next week, the 2nd International European MMT conference will take place online. We start on Monday, Sep 13, with keynote speeches by Warren Mosler, Alla Semenova, Randall Wray and Zdravka Todorova. Tuesday we’ll have panels on unions and demand policy, inequality, Green New Deal and the political economy of fiscal policy. On Wednesday, we will […]