Comments for The Center of the Universe

Comment on NY-23 by Matt Franko

Matt Franko — Mon, 09 Nov 2009 01:02:41 +0000

Now it seems Warren can capture the Libertarian vote also:

I found this link to a recent Cato Institute “Shadow Open Market Committee” report. The Cato Institute is a leading Libertarian “Think Tank” in Washington.

Excerpt (Cato recommends): “the Fed should enlist the help of the Treasury and the Congress to secure the power of interest on reserves to put a floor under the federal funds rate by modifying the regulation of the federal funds market to exclude all but depository institutions eligible to receive interest on reserves from lending in the federal funds market, or by allowing all institutions eligible to lend in the federal funds market to earn interest on deposits at the Fed.”

Much of the Cato policy recommendations focus on tax cutting/less taxes which is also very congruent with Warren’s platform. Here it looks like they want to eliminate the challenge to orderly rate setting that the GSEs present as identified by JKH and Scott F in another thread. They must see some form of increased liberty in this detailed point of conducting monetary policy. Resp,

Comment on A General Analytical Framework for the Analysis of Currencies and Other Commodities by Curious

Curious — Sun, 08 Nov 2009 19:04:17 +0000

When a bank fails and the government takes over, it consolidates the bank’s balance sheet into it’s own, correct?

If so, then in such a case, that bank’s deposits (horizontal money) become deposits at the government (vertical money).

If we assume that the government effectively owns all the banks anyway (whether officially taken over or not), all horizontal money effectively is vertical money (or just money).

The focus in analyzing shortage or surplus of money thus shouldn’t be on fiscal deficit only but on money (credit) overall.

Comment on Payrolls by JKH

JKH — Sun, 08 Nov 2009 13:56:04 +0000

Right! Sorry! I finally read as you intended it a millisecond after I posted my comment. Moi dense.

Comment on Payrolls by Ramanan

Ramanan — Sun, 08 Nov 2009 13:40:17 +0000

JKH,

I meant: As Scott points out, the blog post at WCI is so far off the topic. So people who happen to read Nick’s post may get wrong ideas of what Chartalism is.

Comment on Payrolls by JKH

JKH — Sun, 08 Nov 2009 13:30:15 +0000

Ramanan,

I suspect you didn’t mean Scott’s point.

Comment on Payrolls by Ramanan

Ramanan — Sun, 08 Nov 2009 08:10:47 +0000

Mark Thoma has mentioned it in this blog - links for today - http://economistsview.typepad.com/economistsview/2009/11/links-for-2009-11-07.html

Plus - more people noticing
Minus - Scott’s point - so far off the topic.

Comment on Payrolls by Ralph Musgrave

Ralph Musgrave — Sat, 07 Nov 2009 18:23:59 +0000

This is better than the Monty Python sketches which Warran has kindly made available:

http://stefanmikarlsson.blogspot.com/2009/11/obama-administration-claims-that.html

Comment on Payrolls by JKH

JKH — Sat, 07 Nov 2009 15:29:44 +0000

Yes, that look’s like a good starting point. I’m going in a bit later.

Comment on Payrolls by Scott Fullwiler

Scott Fullwiler — Sat, 07 Nov 2009 15:03:53 +0000

Just jumped in. The discussion is so far off at this point, don’t know if we’ll actually even get to the point at which MMT is understood, much less critiqued. Worth a try, though.

Comment on Payrolls by JKH

JKH — Sat, 07 Nov 2009 05:11:29 +0000

fyi:

http://worthwhile.typepad.com/worthwhile_canadian_initi/2009/11/a-monetarist-theory-of-neochartalism.html