Comments for Alt-M http://www.alt-m.org Ideas for an Alternative Monetary Future Tue, 03 May 2016 20:27:00 +0000 hourly 1 http://wordpress.org/?v=4.1.10 Comment on Can Money-Market Mutual Funds Reliably Avoid the Problem of Runs? by Milton Churchill http://www.alt-m.org/2016/02/03/can-money-market-mutual-funds-reliably-avoid-the-problem-of-runs/#comment-16562 Tue, 03 May 2016 20:27:00 +0000 http://www.alt-m.org/?p=30480#comment-16562 A huge supply of loanable funds compared to demand. Keeps the cost, interest, of the raw material, deposit accounts, low.

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Comment on Japan: The Way Out by Milton Churchill http://www.alt-m.org/2016/05/03/japan-way/#comment-16561 Tue, 03 May 2016 20:22:00 +0000 http://www.alt-m.org/?p=39142#comment-16561 Got it

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Comment on A Monetary Policy Primer, Part 2: The Demand for Money by Andrew_FL http://www.alt-m.org/2016/04/28/monetary-policy-primer-part-2-demand-money/#comment-16560 Tue, 03 May 2016 20:21:00 +0000 http://www.alt-m.org/?p=37011#comment-16560 Perhaps I am traveling in the wrong, or from a certain point of view, right circles! I do not encounter such a view very often. It seemed to me a strawman caricature. I eagerly await your next post on the topic!

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Comment on A Monetary Policy Primer, Part 2: The Demand for Money by George Selgin http://www.alt-m.org/2016/04/28/monetary-policy-primer-part-2-demand-money/#comment-16559 Tue, 03 May 2016 19:22:00 +0000 http://www.alt-m.org/?p=37011#comment-16559 "It is true that prices are not observed to be changed, by the human
beings who determine them, such as to instantaneously and always clear
all markets. It is frustrating to hear economists always note this as if
it were profound."

Alas, Andrew, the fact that prices don't always clear markets must be stressed, not because kit is profound (it isn't), but because some very influential economists deny it! On this (and the general topic of sticky prices), see my next post.

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Comment on Japan: The Way Out by George Selgin http://www.alt-m.org/2016/05/03/japan-way/#comment-16557 Tue, 03 May 2016 19:16:00 +0000 http://www.alt-m.org/?p=39142#comment-16557 Thank you for your kind remarks about TFB.

As for UBI, well, I wrote in favor of something like it in '97 but, as I note, I never published the piece until now, and publish it here only for kicks. As I recall, I was really more interested in arguing that it is always possible for monetary authorities to boost spending by means of money creation. I am far from convinced, nonetheless, that doing so by means of helicopter drops is a good idea.

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Comment on Japan: The Way Out by Milton Churchill http://www.alt-m.org/2016/05/03/japan-way/#comment-16556 Tue, 03 May 2016 17:07:00 +0000 http://www.alt-m.org/?p=39142#comment-16556 So, George, you are promoting the use of "helicopter money" (which is now being referred to as a "Universal Basic Income", or UBI)? Universal in the sense that it is not just the poor and down and out that get money, everyone does – which, again, appears to be what you are proposing.

BTW, finished your book, "The Theory of Free Banking…", this weekend. Would love to see your vision become a reality.

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Comment on A Monetary Policy Primer, Part 2: The Demand for Money by Ralph Musgrave http://www.alt-m.org/2016/04/28/monetary-policy-primer-part-2-demand-money/#comment-16555 Tue, 03 May 2016 07:42:00 +0000 http://www.alt-m.org/?p=37011#comment-16555 There's an extremely simple answer to the questions posed at the start of the above article, namely (roughly speaking) how do we know what the optimum amount of money to issue is? The answer is: "whatever amount induces the private sector to spend at a rate that brings full employment (or NAIRU if you like acronyms). That's the answer that an MMTer would give and the answer given by Milton Friedman.

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Comment on A Monetary Policy Primer, Part 1: Money by Counsellor http://www.alt-m.org/2016/04/21/a-monetary-policy-primer-part-money/#comment-16554 Mon, 02 May 2016 18:28:00 +0000 http://www.alt-m.org/?p=36963#comment-16554 As one who respects your scholarship, analysis and articulations, I don't mean to over-engage you; so you can let this "slide."

You do encapsulate the issue when you write:
". . . what ought to be."

By experience, and some other tests, we may perceive ". . . what ought **not** to be." The other may be a bit beyond our grasp.

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Comment on A Monetary Policy Primer, Part 1: Money by George Selgin http://www.alt-m.org/2016/04/21/a-monetary-policy-primer-part-money/#comment-16553 Mon, 02 May 2016 17:03:00 +0000 http://www.alt-m.org/?p=36963#comment-16553 I don't disagree, Counsellor. In explaining how things work under present arrangements, I don't mean to be understood to endorse those arrangements. All reform involves going from what is to what ought to be.

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Comment on A Monetary Policy Primer, Part 1: Money by Counsellor http://www.alt-m.org/2016/04/21/a-monetary-policy-primer-part-money/#comment-16552 Mon, 02 May 2016 15:32:00 +0000 http://www.alt-m.org/?p=36963#comment-16552 Sorry, cut off too soon.
The underlying issues of "policy" thus concern the determination of objectives and THEN of the means for their attainment.

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