Tag: monetary policy

MMT: Why Do Governments That Issue Their Own Currency Bother To Sell Bonds?

How does a modern government actually spend? Through keystrokes. Okay. When the government wants to buy something or make a transfer payment or Social Security payment, it credits a bank’s reserves, and the bank credits your demand deposit. All electronically. That’s the way modern states spend. So they are spending their own money unit into existence. Taxes just reverse that....

Central Banks around the globe disrupted by political interference | DW News

The US Federal Reserve. The Bank of England. The European Central Bank: the world over, central banks are some of the most powerful institutions. Their arsenal allowing them to adjust interest rates, inflation, print money, and shore up the economy. And they are usually designed to be INDEPENDENT from political inteference. But is that changing? Applause, handshakes and backslaps aside,...

“Fear the Boom and Bust”: Keynes vs. Hayek Rap Battle

>>HOTEL CLERK: Lord Keynes! Welcome, sir. It’s a pleasure.>>KEYNES: The pleasure’s all mine. >>CLERK: Your agenda–>>KEYNES: That won’t be necessary. I am the agenda. >>CLERK: [laughs]>>KEYNES: Tell them I’ve arrived– >>HAYEK: And then tell them I’ve arrived.>>CLERK: And, your name is?>>HAYEK: Hayek. F.A. Hayek. With an “H”.>>KEYNES: Freddy. (yeah) Keynes. Hey, listen, party at the Fed.>>HAYEK: Already? >>KEYNES: Twenty minutes....