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MMT And Government Finance: You Can't Always Get What You Want


this post authored by Michael U. Krause, Thomas A. Lubik, and Karl Rhodes
During the past 25 years, low-interest rates and highly expansionary monetary policy with little apparent inflation have created the illusion that a government can simply print money to fund exorbitant deficit spending with no repercussions. This core tenet of so-called modern monetary theory ignores the fact that deficit spending is constrained in the long run by a government s ability to satisfy creditors.
Promoters of modern monetary theory (MMT) - including a growing number of pundits and policymakers - are toying with the idea that deficits don t matter. They are tempted to believe that a government can merge fiscal and monetary policy and simply print currency to pay for its expenditures indefinitely without economic costs or constraints. This core tenet of MMT, which has permeated the public debate, worries economists of all stripes - not just mainstream economists, but also traditiona ....

United States , Thomasa Lubik , Alberto Bisin , Toddb Walker , Karl Rhodes , Marc Lavoie , Ericm Leeper , Tim Sablik , Troy Davig , Shu Chun Susan Yang , Ben Bernanke , Michaelu Krause , Federal Reserve Bank , University Of Cologne , Federal Reserve , Treasury Congress , Research Department , Washington Post , University Of Virginia , Federal Reserve Governor Ben Bernanke , Middle East , New Keynesian , Middle Ages , South America , Dont Matter , Monetary Theory ,

Living The Good Life In A Non-Growth World: Investigating The Role Of Hierarchy, Part 2


by Blair Fix
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Summary
Humanity s most pressing need is to learn how to live within our planet s boundaries - something that likely means doing without economic growth. How, then, can we create a non-growth society that is both just and equitable? I attempt to address this question by looking at an aspect of sustainability (and equity) that is not often discussed: the growth of
hierarchy. As societies consume more energy, they tend to become more hierarchical. At the same time, the growth of hierarchy also seems to be a key driver of income/resource inequality. In this essay, I review the evidence for the joint relation between energy, hierarchy and inequality. I then speculate about what it implies for achieving a sustainable and equitable future. ....

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Living The Good Life In A Non-Growth World: Investigating The Role Of Hierarchy, Part 1


by Blair Fix
This is the first of two essays written for (and supported by) the Seoul Platform for Initiating Discourses on an Equitable and Resilient Society. These essays investigate the role that hierarchy plays in driving inequality and unsustainability. This piece introduces the facts of hierarchy. The second (long-form) essay will look at how these facts relate to ‘living the good life in a non-growth world’.
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Sustainability or bust
For the past 200 years, humanity has conducted an unintended experiment. The (tacit) research question is this: how much of the Earth’s resources can one species consume? We have yet to find out the answer … nor do we want to. ....

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The Rise Of Human Capital Theory


The Rise Of Human Capital Theory
If there was an award for the most pernicious scientific idea ever, what theory should get first prize? I would vote for eugenics, a theory that claims we can improve humanity through selective breeding.
If there was a second prize, I d give it to human capital theory. I think of human capital theory as eugenics light . It purges the idea that abilities are innate (and that we should selectively breed the fit ). But human capital theory keeps the Nietzschean idea that humanity s success can be attributed mostly to gifted ubermensch.
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