You're forgetting that the government doesn't _control_ the whole money supply. The government only controls how much it itself creates or deletes on net. Most money is created by commercial banks. As the demand for…
Assuming that the fall in aggregate demand will last for several time periods, in the absence of intervention, the companies lay off part of their workforce, since now they don't need to produce as much per time period.…
> Inflation is caused by additional dollars chasing the same number of goods. But if there's a fall in aggregate demand at a given price level, there are _fewer_ dollars chasing the same number of goods for a period of…
One of the biggest things confusing people about how public finance works is that everyone is focused on the Fed rather than the Treasury. A good aspect of MMT is that it explains how the Treasury spending more than it…
Totally agree, glad you brought this up. The actor was good but the script and the direction didn't fit with the original character at all. It felt like a modern take on the role.
I haven't read the whole essay yet, but I'm really glad I caught your comment here. Thank you for writing this back then and for sharing it now!
The bank doesn't usually "have the money to give" when it makes a loan. Let's say Bank A loans $1000 to a customer. It creates a $1000 bank deposit in that customer's account. On the balance sheet it looks like this:…
It's only a debt for the business who receives the loan. When a business receives a loan it shows up as an asset to them in the form of a bank deposit. The business then usually uses that demand deposit to purchase…
Are you against private banks being able to create money when they make loans? If so, why?
I don't see how reading manga on an E-ink ereader, with one page filling the screen and "turning" pages by pressing the right side, is fundamentally different from reading it in "analog" (paper) form. I wouldn't want to…
> So the demand for USD is only indirectly due to demand for goods and services; after all, there must be some reason why merchants are pricing their wares in USD. The direct driver of demand is the law itself, hence…
The "demand for USD" is really demand for goods and services that are priced in USD. Because everyone living in the U.S. uses USD because that's what we pay taxes in in the U.S., most people in the U.S. offer their…
Yes, I'm working through a few books that way. I didn't see his 24h challenge so I'm not sure what it is, but what has been effective for me is blocking off a few hours every day to work on this stuff. I haven't gotten…
I have been inspired by some of your past posts suggesting a path for studying mathematics and doing graduate level work, and have changed my direction to try and follow what you suggest. Is there any way I can get in…
You're forgetting that the government doesn't _control_ the whole money supply. The government only controls how much it itself creates or deletes on net. Most money is created by commercial banks. As the demand for…
Assuming that the fall in aggregate demand will last for several time periods, in the absence of intervention, the companies lay off part of their workforce, since now they don't need to produce as much per time period.…
> Inflation is caused by additional dollars chasing the same number of goods. But if there's a fall in aggregate demand at a given price level, there are _fewer_ dollars chasing the same number of goods for a period of…
One of the biggest things confusing people about how public finance works is that everyone is focused on the Fed rather than the Treasury. A good aspect of MMT is that it explains how the Treasury spending more than it…
Totally agree, glad you brought this up. The actor was good but the script and the direction didn't fit with the original character at all. It felt like a modern take on the role.
I haven't read the whole essay yet, but I'm really glad I caught your comment here. Thank you for writing this back then and for sharing it now!
The bank doesn't usually "have the money to give" when it makes a loan. Let's say Bank A loans $1000 to a customer. It creates a $1000 bank deposit in that customer's account. On the balance sheet it looks like this:…
It's only a debt for the business who receives the loan. When a business receives a loan it shows up as an asset to them in the form of a bank deposit. The business then usually uses that demand deposit to purchase…
Are you against private banks being able to create money when they make loans? If so, why?
I don't see how reading manga on an E-ink ereader, with one page filling the screen and "turning" pages by pressing the right side, is fundamentally different from reading it in "analog" (paper) form. I wouldn't want to…
> So the demand for USD is only indirectly due to demand for goods and services; after all, there must be some reason why merchants are pricing their wares in USD. The direct driver of demand is the law itself, hence…
The "demand for USD" is really demand for goods and services that are priced in USD. Because everyone living in the U.S. uses USD because that's what we pay taxes in in the U.S., most people in the U.S. offer their…
Yes, I'm working through a few books that way. I didn't see his 24h challenge so I'm not sure what it is, but what has been effective for me is blocking off a few hours every day to work on this stuff. I haven't gotten…
I have been inspired by some of your past posts suggesting a path for studying mathematics and doing graduate level work, and have changed my direction to try and follow what you suggest. Is there any way I can get in…