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montmorencyA revised version of that paper:http://www.paecon.net/PAERevie......

December 2014

montmorencyAn interesting analysis of Modern Money Theory and New Currency Theory by Joseph Huber, prepared for the American Monetary Institute:http://www.monetary.org/wp-con......

December 2014

GuyHarper"Where did you read this?"I have never read any MMT stuff which contradicts it. It is my interpretation of all the MMT stuff I have read I suppose. MMT (my interpretation, is it correct?) focuses on the point that the sum of all sectoral balances is zero. This is of course true and if people underst...

December 2014
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Liability could be issued as zero-coupon irredeemable bonds

FT letter Fran

Sir, Simon Ward (Letters, November 13) states that Adair Turner’s proposal to fund government spending with newly created money “would involve the creation of more Bank of England reserves, which represent a liability of the state and bear interest”. But there is no reason that the new liability would have to bear interest, since it could be issued as zero-coupon irredeemable bonds, reads the letter by Fran Boait in Financial Times, 16th Nov 2014.

GuyHarper"With regards to reading the proposal - I may be mistaken, but I think I may be the first person to suggest this parallel system of reserve accounts. I'd be happy to find out someone else has had the idea and fleshed it out in further detail but I haven't seen it anywhere so far :)"I assumed this i...

November 2014

dannyboyFirstly, I think this proposal (which I was able to outline in a couple of paragraphs) is orders of magnitude less complex than reams of new regulations that are being implemented in an attempt to patch the existing system.If you are worried about banks trying to offload these new reserves back to t...

November 2014

RJIt would create an unnecessary level of complexity. And the banks would likely just use these nil interest reserves to settle with the treasury (for our tax payments) the very same day. A better suggestion would be just to increase the required reserve holdings to back deposits held....

November 2014
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Regulation of banks is not a solution – it ignores the larger issues at play

cherwell

"Greater regulation of banks does not offer any meaningful solution. Regulation ignores the larger issues at play. As we’ve seen in the limited scope of reforms since the crisis, what happens is that you get thousands of pages of complex regulation. But the bank lobby has huge resources, millions of pounds, to spend on lawyers to water down these changes. And there’s nobody fighting that battle on the side of society", argues Fran Boait, Positive Money's Executive Director in the interview in Cherwell, 8th November 2014

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