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0Fiat Currency Economics – A Primer on Modern Monetary Theory
This article will attempt to explain the general workings of America's fiat economy, concentrating on the monetary accounting. These explanations follow the principles of Modern Monetary Theory.
48Budget Surpluses Hurt the Economy
This article uses the principles of Modern Monetary Theory to explain the fate of dollars when the federal budget is in surplus. I touch upon economic contraction, removal of dollars from the economy, what would happen if America tried to pay down the national debt by buying back bonds, and what would happen if America tried to pay down the national debt by running persistent surpluses.
8QE3 and Mortgage-Backed Securities - Bernanke's Latest Folly
This article uses the principles of Modern Monetary Theory to examine the uselessness of quantitative easing - specifically QE3, which has been announced recently. As QE3 will be aimed specifically at mortgage-backed securities (MBS), I go into some detail about MBS's, the process of bundling mortgages, and the pitfalls of a mortgage market driven largely by demand for MBS's.
2Why Quantitative Easing Didn't Work
This article explains the mechanics of quantitative easing, specifically QE1 and QE2. I also discuss the conventional thinking behind QE in general, and why it is incorrect. My reasoning follows the principles of Modern Monetary Theory.
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Why Interest Rates Aren't Going Up
This article follows the principles of Modern Monetary Theory to explain how the government controls interest rates through the sale of t-bills. I also touch upon a bit of reserve banking and the fallacy of the loanable funds market.
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The U.S. "National Debt" explained, MMT-style
The idea that the U.S. government is in debt is a widespread misconception. The "national debt" is not a measure of debt, but rather a measure of saved dollars held by the private sector. This article attempts to explain the mechanics of money creation, as well as distinguish dollars from bank-created credit. These explanations follow the principles of Modern Monetary Theory.
