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Introduction
Current institution
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August 2016 - present
October 2014 - present
Global Institute for Sustainable Prosperity
Position
- Researcher
January 2012 - May 2015
Publications
Publications (60)
The Asian Development Bank COVID-19 Policy Database recently added an entry on sector financial balances (SFBs). This addition to the policy database provides information for 35 economies on the financial positions of the private sector, government sector, and the rest of the world, which by construction add up to 0. Data used to calculate SFBs are...
HERE IS THE LINK TO FULL PAPER http://jesusfelipe.com/wp-content/uploads/2021/08/ROPE-Monetization.pdf The severe economic downturn caused by the COVID-19 pandemic has forced governments worldwide to increase spending while tax revenues simultaneously collapsed. Concurrent with this, central banks in several of these countries are financing a signi...
Using the ADB COVID-19 Policy Database, this report examines how ADB members have dealt with the pandemic. It includes information on the amounts of the packages announced by ADB members during 2020 to combat the effects of COVID-19. Website: https://www.adb.org/publications/one-year-living-covid-19
The severe economic downturn caused by the coronavirus disease (COVID-19) pandemic has forced governments worldwide to increase spending while tax revenues simultaneously collapsed. Concurrent with this, central banks in several of these countries are financing a significant percent of their direct income support through direct lending or purchases...
We use the information compiled as of 15 June 2020 by the Asian Development Bank (ADB) in the ADB COVID-19 Policy Database to analyze the measures taken by its 68 members, plus the European Central Bank, and the European Union, to combat the coronavirus disease (COVID-19) pandemic. Measures associated with monetary policy amount to $14.9 trillion (...
HERE IS THE LINK TO FULL TEXT AS OF MARCH 2021... https://sci-hub.st/https://doi.org/10.1111/pbaf.12249
Modern Monetary Theory (MMT) argues that the interest rate on the national debt for a monetary sovereign is a policy variable, not subject to whether bond markets “accept” or “reject” it. This paper defines measures of the components of the stan...
The ADB COVID-19 Policy Database displays the measures taken and monetary amounts announced or estimated by the 68 members of the Asian Development Bank, two institutions, and nine other economies (i.e., a total of 79 entries) until May 2020, to fight the COVID-19 pandemic. Measures are classified according to (i) the path a given measure takes to...
Posted to FT Alphaville
https://ftalphaville.ft.com/2019/03/01/1551434402000/An-MMT-response-on-what-causes-inflation/
The debates between the structuralists and horizontalists highlighted the fact that endogenous money proponents had a very different understanding of monetary operations than did neoclassical economists. Indeed, as Fullwiler (2003) reports, until recently, research among neoclassicals related to bank behavior in the U. S. federal funds market had l...
Neoclassical views on fiscal sustainability are based on several assumptions that are inconsistent with accounting and operational realities of the money system, including dangers of “bond vigilantes” in government debt markets and “printing money” is inherently inflationary. Combining these assumptions with the broader world view of monetary polic...
Provides examples and big picture view of how the national payments system works and the role of the Fed within it. Then discusses implications for how banks create money. Video of the presentation is available at modernmoneynetwork.org
Discusses the process of valuation within the Social Fabric Matrix Approach (SFM-A) methodology designed by F. Gregory Hayden, then considers ecosystem services valuation through the lens of the SFM-A blended with the Modern Money approach.
Discusses the operations of helicopter money vs. traditional deficits
Discusses operations of a central bank at the permanent floor.
Critique of CBO's budget projections
Shows operationally how helicopter money, QE, and bond sales work.
Explains the rationale for defining monetary and fiscal policies by function rather than by the traditional taxonomy of "who's doing it."
Discusses the monetary operations of People's QE, and compares them to traditional deficits.
Discusses the differences between a budget constraint and an inflation constraint on government spending.
This paper uses the Social Fabric Matrix Approach (SFM-A) to integrate ecosystem valuation and the monetary system. The differing patterns of component deliveries in ecological systems mean that attempts to evaluate them via traditional financial discounting techniques are problematic. However, the approach is also problematic when one considers ho...
Traditional financial theory is driven by a narrow set of values—namely that only financial risk and financial return matter. Quite clearly, investments—whether projects or companies—produce a much broader set of outcomes than this, while investors are in fact people with their own sets of broader concerns. This paper argues that the emerging field...
Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals. Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic...
A number of debates are taking place regarding the appropriate response of monetary policy both to the crisis and the Great Recession that followed, particularly in regard to interest on reserve balances and so-called unconventional monetary policy operations. This paper describes in detail an endogenous money perspective on the interactions betwee...
The Job Guarantee (Mosler 1997-8, Mitchell and Muysken 2008, Wray 1998; hereafter, JG) is a policy proposal designed as an alternative to the neoclassical natural rate of unemployment or non-accelerating inflation rate of unemployment (NAIRU). Whereas that approach presumes that some positive percentage of the total labor force must be sustained as...
This post will explore at length (warning!) and in detail (another warning — wonk alert!) the MMT perspective on the debt ratio and fiscal sustainability. While the approach suggests a macroeconomic policy mix and strategies for both fiscal and monetary policies that most neoclassical economists currently believe are unsustainable, ultimately the M...
Over the past two decades a group of us has developed an alternative approach to monetary theory that integrates the insights of Knapp’s (1924) state money approach (also called chartalist and adopted by Keynes (1930, 1914)), the credit money view of Innes (1913, 1914), Lerner’s (1943, 1947) functional finance approach, Minsky’s (1986) views of ban...
THIS IS THE WORKING PAPER VERSION. FOR THE PUBLISHED VERSION, GO HERE https://www.researchgate.net/publication/256043652_An_Endogenous_Money_Perspective_on_the_Post-Crisis_Monetary_Policy_Debate
A number of debates are taking place regarding the appropriate response of monetary policy both to the crisis and the Great Recession that followed, parti...
This paper explains in detail why proof platinum coin seigniorage would not be inflationary.
The debt ceiling debate could be ended right now given that the US Constitution bestows upon the US Treasury the authority to mint coins. Further, this simple change would lift the veil on how current monetary operations work and thereby demonstrate clearly that a currency-issuing government under flexible exchange rates cannot be forced into defau...
This paper uses the sector financial balances model of aggregate demand to illustrate the effects of fiscal austerity policies on the economy. It further demonstrates that government deficits are not directly controllable by policy makers but are rather endogenous to the responses of the private sector to austerity policies.
The self-imposed constraint requiring the U. S. Treasury to have a positive balance in its account prior to spending combined with the Federal Reserve's desire to achieve its federal funds rate target result in six transactions being necessary when the U. S. Federal Government runs a deficit. This paper explains these six transactions by combining...
Paul Krugman's critique of MMT is based on three incorrect assumptions about what MMT policy proposals actually are; it also demonstrates a lack of understanding of our modern monetary system (as is generally verified by volumes of empirical research on the monetary system by both MMT’ers and non-MMTer’s). While MMT’ers argue that all three assumpt...
At its core, there are two parts to Modern Monetary Theory (MMT). The first is a description of how the monetary system actually works, mostly focusing upon interactions between the central bank, the treasury, and the financial system, though this part also requires a very thorough understanding of the Minskyan-related literature of many MMT’ers. T...
This paper discusses a local, privately-run and federally-funded program for all individuals able to demonstrate their income is at, or below the poverty line. This free Certified Nursing Assistant training program enables successful participants to obtain appropriate employment in local hospitals. The program is complementary to job guarantee prop...
Those warning of “helicopter drops” of money by central bankers, as Ben Bernanke is often accused of doing in 2010, actually do not understand modern monetary operations. This post demonstrates that central bank operations generally are not helicopter drops, while fiscal operations in fact are. The exception for central banks would be purchasing fi...
This chapter utilizes the social fabric matrix approach (SFM-A) to provide a detailed description of the Federal Reserve’s
(Fed’s) daily operations and the recent financial crisis. The SFM of the Fed’s operations presents the primary components
– major norms, institutions, technologies – relevant on a day-to-day basis. The SFM is then used for norm...
The purpose of this chapter is to introduce the reader to the Social Fabric Matrix approach to policy analysis (SFM-A) as
laid out in Hayden (2006). This chapter is better understood as a “how to” chapter rather than as a more traditional summary
or discussion of the rest of the contributions in the volume. The chapter describes the foundations of...
Develops a simple model of aggregate demand that explicitly incorporates the financial sector balances approach of Wynne Godley. Demonstrates how this can be used to understand the 1990s expansion and the recession beginning in late 2000s.
In the midst of the worst economic crisis since the Great Depression, policy makers in the U. S. and in other nations have reduced interest rates, expanded central bank balance sheets, increased deficits to levels generally not seen since World War II, and begun seriously rethinking financial regulation. This may come as no surprise to any student...
The Social Fabric Matrix Approach (SFM-A) is a rigorous and holistic methodology for undertaking policy-relevant, complex systems research. This book contains both extensive applications of the SFM-A to contemporary issues and chapters that embed applied research in relevant theoretical, philosophical, and methodological frameworks. It offers a bal...
This chapter utilizes the social fabric matrix approach (SFM-A) to provide a detailed description of the Federal Reserve’s (Fed’s) daily operations and the recent financial crisis. The SFM of the Fed’s operations presents the primary components- major norms, institutions, technologies- relevant on a day-to-day basis. The SFM is then used for normat...
Central to current policy debates regarding public pensions, the appropriate macroeconomic policy mix, and any number of other issues related to growth, development, poverty alleviation, and so forth, is the concept of fiscal sustainability. For neoclassical economists, fiscal sustainability is analyzed via the intertemporal government budget const...
As baby boomers reach retirement age, concerns over the future path of federal spending on entitlement programs grow among orthodox economists. Researchers closely tied to the “generational accounting” literature (i.e., Kotlikoff 1992) have been particularly prominent here. These economists have developed a measure that they call the “fiscal imbala...
This paper provides a framework for Institutionalist analysis of the determinants of inflation and inflation targeting policies based upon principles in F. Gregory Hayden's book, Policymaking for a Good Society (2006). Theoretical Background Milton Friedman famously argued, " inflation is everywhere and always a monetary phenomenon. " In debates wi...
The employer of last resort (ELR) policy proposal, also referred to as the job guarantee or public sector employment, is promoted by its supporters as an alternative to unemployment as the primary means of currency stability. The core of the ELR proposal is that a job would be provided to all who wanted one at a decent, fixed wage; the quantity of...
Financial innovations have reduced banks' reserve holdings significantly. Some argue the Fed's ability to set interest rates might eventually be compromised as a result. This concern arises from a misunderstanding of Fed operations. Regardless of the quantity of reserve balances, the Fed can always set its federal funds rate target. The quantity of...
It has long been recognized that uncompensated reserve balances act like a tax on banks and that banks as a result expend scarce resources to avoid holding them. The Fed itself has historically supported legislation to enable it to pay interest on reserve balances (e.g., Kohn 2003), as have economists (e.g., Goodfriend 2002), both for reasons of ec...
FULL TEXT VERSION IS HERE: https://www.researchgate.net/publication/254822461_Timeliness_and_the_Fed's_Daily_Tactics
Recognizing that analysis of the daily activities have recently become a standard part of the monetary economics literature, this paper provides a detailed description of the Fed’s daily tactics from an institutionalist perspective...
actions generally abstracted from the Open Market Desk’s (hereafter, the Desk’s) daily actions in the federal funds market, concentrating instead upon the strategy involved in setting intermediate targets as in the monetary policy rule and measuring monetary pol- icy literatures. On the other hand, research on the daily federal funds market primari...
In recent years there has been a significant amount of research on issues relating to the Federal Reserve's daily implementation of monetary policy in the federal funds market. In the orthodox literature, research has focused on declining reserve requirements, announcement effects, and Japan's recent near-zero interest rate policy. Research within...
Our purpose is to evaluate the efficiency of the financial assurance plan in the license application' submitted by American Ecology Corporation (AEC) to site, design, and build a new technological facility in Boyd County, Nebraska, for the disposal of low-level radioactive waste (LLRW). Efficiency means the ability to accomplish desired effects. Th...
This working paper presents a debate, which begins with Bret Fiebiger arguing that the approach to monetary and financial macroeconomics which terms itself "modern monetary theory” does not have sound analytic foundations and is of little relevance empirically. Scott Fullwiler, Stephanie Kelton and L. Randall Wray, three leading contributors to mod...
