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Modern Monetary Theory
Modern monetary theory or modern money theory (MMT) is a heterodox macroeconomic theory that describes currency as a public monopoly and unemployment as evidence that a currency monopolist is overly restricting the supply of the financial assets needed to pay taxes and satisfy savings desires. According to MMT, governments do not need to worry about accumulating debt since they can pay interest by printing money. MMT argues that the primary risk once the economy reaches full employment is inflation, which acts as the only constraint on spending. MMT also argues that inflation can be controlled by increasing taxes on everyone, to reduce the spending capacity of the private sector. MMT is opposed to the mainstream understanding of macroeconomic theory and has been criticized heavily by many mainstream economists. MMT is also strongly opposed by members of the Austrian school of economics. Principles MMT's main tenets are that a government that issues its own fiat money: # Ca ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Heterodox Economics
Heterodox economics is a broad, relative term referring to schools of economic thought which are not commonly perceived as belonging to mainstream economics. There is no absolute definition of what constitutes heterodox economic thought, as it is defined in contrast to the most prominent, influential or popular schools of thought in a given time and place.Dequench, David (2007) "Neoclassical, mainstream, orthodox, and heterodox economics", ''Journal of Post Keynesian Economics'', 30 (2), 279-30/ref> Groups typically classed as heterodox in current discourse include the Austrian school of economics, Austrian, Ecological economics, ecological, Marxian economics, Marxist-Historical school of economics, historical, Post-Keynesian economics, post-Keynesian, and modern monetary theory, modern monetary approaches.Frederic S. Lee, 2008. "heterodox economics," ''The New Palgrave Dictionary of Economics'', 2nd Edition, v. 4, pp. 2–65Abstract. Four frames of analysis have been highlight ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
CNBC
CNBC is an American List of business news channels, business news channel owned by the NBCUniversal News Group, a unit of Comcast's NBCUniversal. The network broadcasts live business news and analysis programming during the morning, Daytime television in the United States, daytime trading day, and early-evening hours, with the remaining hours (such as weekday prime time and weekends) are filled by business-related Television documentary, documentaries and reality television programming, as well as occasional NBC Sports presentations. CNBC operates an accompanying financial news website, CNBC.com, which includes news articles, video and podcast content, as well as subscription-based services. CNBC's headquarters and main studios are located in Englewood Cliffs, New Jersey, while it also maintains a studio at the Nasdaq MarketSite in Times Square, New York City. CNBC was originally founded in April 1989 as the Consumer News and Business Channel, a joint venture between NBC ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Commodity Money
Commodity money is money whose value comes from a commodity of which it is made. Commodity money consists of objects having value or use in themselves ( intrinsic value) as well as their value in buying goods. This is in contrast to representative money, which has no intrinsic value but represents something of value such as gold or silver, for which it can be exchanged, and fiat money, which derives its value from having been established as money by government regulation. Examples of commodities that have been used as media of exchange include precious metals and stones, grain, animal parts (such as beaver pelts), tobacco, fuel, and others. Sometimes several types of commodity money were used together, with fixed relative values, in various commodity valuation or price system economies. Aspects Commodity money is to be distinguished from representative money, which is a certificate or token which can be exchanged for the underlying commodity, but only by a formal process ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Political Economy Research Institute
The Political Economy Research Institute (PERI) is an independent research unit at the University of Massachusetts Amherst. According to its mission statement, it "...promotes human and ecological well-being through our original research". PERI was established in 1998 by co-directors Robert Pollin and Gerald Epstein, both economists at the university. Funding for its foundation came from Pollin and his businessman father, Abe Pollin. Toxic 100 PERI's Toxic 100 list includes one hundred United States companies ranked by the amount of greenhouse gases, air pollution and water pollution produced and the relative toxicity of the pollutants, as determined by PERI at the University of Massachusetts Amherst The University of Massachusetts Amherst (UMass Amherst) is a public land-grant research university in Amherst, Massachusetts, United States. It is the flagship campus of the University of Massachusetts system and was founded in 1863 as the .... The Greenhouse 100 Index rank ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sectoral Balances
The sectoral balances (also called sectoral financial balances) are a sectoral analysis framework for macroeconomic analysis of national economies developed by British economist Wynne Godley. Sectoral analysis is based on the insight that when the government sector has a budget deficit, the non-government sectors (private domestic sector and foreign sector) together must have a surplus, and vice versa. In other words, if the government sector is borrowing, the other sectors taken together must be lending. The balances represent an accounting identity resulting from rearranging the components of aggregate demand, showing how the flow of funds affects the financial balances of the three sectors. This corresponds approximately to Balances Mechanics developed by Wolfgang Stützel in the 1950s. The approach is used by scholars at the Levy Economics Institute to support macroeconomic modelling and by Modern Monetary Theorists to illustrate the relationship between government budg ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Wynne Godley
Wynne Godley (26 September 192613 May 2010) was an economist famous for his pessimism about the British economy and his criticism of the British government. In 2007, he and Marc Lavoie wrote a book about the " Stock-Flow Consistent" model, an analysis that predicted the 2008 financial crisis. Dirk Bezemer argues that Godley was notable for predicting the nature of the Great Recession of the late 2000s well in advance, and for doing so on the basis of a formal model. Life Godley was born in London to Hugh Godley, 2nd Baron Kilbracken and his wife Elizabeth Usborn. He was born six years after his older brother, John who was to become John Godley, 3rd Baron Kilbracken. Godley attended Sandroyd School in Wiltshire before attending Rugby School then read politics, philosophy and economics at New College, Oxford where Isaiah Berlin and Philip Andrews, one of the main economists of the Oxford Economic Research Group, were two of his most important mentors. Godley trained to beco ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hyman Minsky
Hyman Philip Minsky (September 23, 1919 – October 24, 1996) was an American economist and economy professor at Washington University in St. Louis. A distinguished scholar at the Levy Economics Institute of Bard College, his research was intent on providing explanations to the characteristics of financial crises, which he attributed to swings in a potentially fragile financial system. Minsky is often described as a post-Keynesian economist because, in the Keynesian tradition, he supported some government intervention in financial markets, opposed some of the financial deregulation of the 1980s, stressed the importance of the Federal Reserve as a lender of last resort and argued against the over-accumulation of private debt in the financial markets. Minsky's economic theories were largely ignored for decades, until the subprime mortgage crisis of 2008 caused a renewed interest in them. Education A native of Chicago, Illinois, Minsky was born into a Jewish family of Menshevik ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Abba Lerner
Abraham "Abba" Ptachya Lerner (also Abba Psachia Lerner; 28 October 1903 – 27 October 1982) was a Russian-born American-British economist. Biography Born in Novoselytsia, Bessarabia, Russian Empire, Lerner grew up in a Jewish family, which emigrated to Great Britain when Lerner was three years old. Lerner grew up in London's East End and from age 16 worked as a machinist, a teacher in Hebrew schools, and as an entrepreneur. In 1929, Lerner entered the London School of Economics, where he studied under Friedrich Hayek. A six-month stay at Cambridge in 1934–1935 brought him into contact with John Maynard Keynes. In 1937, Lerner emigrated to the United States. While in the US, he befriended intellectual opponents Milton Friedman and Barry Goldwater. Lerner never stayed at one institution long, serving on the faculties of nearly a dozen universities and accepting over 20 visiting appointments. Lerner was 62 when he was given a professorship at the University of California, Ber ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Functional Finance
Functional finance is an economic theory proposed by Abba P. Lerner, based on effective demand principles and chartalism. It states that government should finance itself to meet explicit goals, such as taming the business cycle, achieving full employment, ensuring growth, and low inflation. Principles The principal ideas behind functional finance can be summarized as:Edward J. Nell, Mathew Forstater, ''Reinventing functional finance: transformational growth and full employment'', , Edward Elgar Publishing 2003 *Governments have to intervene in the national and global economy; these economies are not self-regulating. *The principal economic objective of the state should be to ensure a prosperous economy. *Money is a creature of the state; it has to be managed. *Fiscal policy should be directed in light of its impact on the economy, and the budget should be managed accordingly, that is, 'balancing revenue and spending' is not important; prosperity is important. *The amount and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Alfred Mitchell-Innes
Alfred Mitchell-Innes (30 June 1864 – 13 February 1950) was a British diplomat, economist and author. He had the Grand Cross of the Order of Medjidieh conferred upon him by Abbas II, Khedive of Egypt. He served as the first president of the Egyptian and the Africa's most crowned club Al Ahly SC, from 1907 to 1908. Early and personal life The youngest child of Alexander Mitchell-Innes (1811–1886) of Ayton, and Whitehall (near Chirnside), Berwickshire, by his second spouse Fanny Augusta (1821–1902), daughter of James Vine, in Puckaster, Isle of Wight, Alfred was born at 2 Forres Street, Edinburgh. He married (her second marriage) in 1919, Eveline (d. 28 December 1946), daughter of Sir William Miller, 1st Baronet of Manderston, Berwickshire. In 1934, Mitchell-Innes and his wife contributed 25 Egyptian and oriental antiquities he had acquired from Egypt to the British Museum. Career Educated privately, he entered the British Diplomatic Service in 1890 and was appoi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Chartalism
In macroeconomics, chartalism is the theory of money that money originated historically with states' attempts to direct economic activity rather than as a spontaneous solution to the problems with barter or as a means with which to tokenize debt, and that fiat currency has value in exchange because of sovereign power to levy taxes on economic activity payable in the currency they issue. Background Georg Friedrich Knapp, a German economist, invented the term "chartalism" in his ''State Theory of Money'', which was published in German in 1905 and translated into English in 1924. The name derives from the Latin '' charta'', in the sense of a token or ticket. Knapp argued that "money is a creature of law" rather than a commodity. Knapp contrasted his state theory of money with " metallism", as embodied at the time in the gold standard, where the value of a unit of currency depended on the quantity of precious metal it contained or could be exchanged for. He argued the state could cr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Georg Friedrich Knapp
Georg Friedrich Knapp (; 7 March 1842 – 20 February 1926) was a German economist who in 1905 published ''The State Theory of Money'', which founded the chartalist school of monetary economics, which argues that money's value derives from its issuance by an institutional form of government rather than spontaneously through relations of exchange. Biography Knapp was born on 7 March 1842. His father was the acclaimed chemist Friedrich Ludwig Knapp. Knapp studied in Munich, Berlin and Göttingen, and in 1867 became director of the Statistical Bureau of Leipzig. In 1869 he was appointed assistant professor of economics and statistics at Leipzig University. In 1874 he was appointed a professor of political economy at the University of Strasbourg, where he remained until 1918. He was also rector at Strasbourg in 1891–1892 and 1907–1908. In 1886, he founded the periodical ''Abhandlungen aus dem staatswissenschaftlichen Seminar zu Strassburg''. Family Knapp was the father o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
