♦ Drs Stephanie Kelton and Bill Mitchell join Real Progressives to present the world of #MMT
Streamed live on Feb 18, 2018
♦ Fadhel Kaboub: Monetary Sovereignty, Colonialism and Independence
Jan 27, 2019
Patricia and Christian chat with economics professor and president of the Global Institute For Sustainable Prosperity, Fadhel Kaboub about the meaning and importance of monetary sovereignty, MMT in relation to developing countries, Venezuela, colonialism, Scottish independence, and the MMT Job Guarantee.
♦ Steven Hail: Behavioural and Post-Keynesian Foundations of a New Macroeconomics
Author: Steven Hail
- Thesis download: ThesisHail2016.pdf [ 3.8 MB ]
Hail, Steven, 2016 Behavioural and Post-Keynesian Foundations of a New Macroeconomics, Flinders University, Flinders Business School
Orthodox macroeconomics, as it is taught in the majority of universities around the world, and practised in governments, central banks, and international agencies, limits the range of economic policy proposals which can be given serious consideration, and consequently biases policy outcomes.
This would not be a matter of concern, if the core axioms on which the dominant orthodox model is based were valid; if the empirical predictions of the model were reliable; or even if there were good reasons for limiting the range of policy proposals to be considered in line with the restrictions imposed by the orthodox model.
If none of these are true, then addressing the inadequacies of modern orthodox economics is a worthwhile task, and identifying a set of theories and models which better describe people as they are, the economic system as it is, and the range of available policy options and achievable outcomes which exist, is important.
The aim of this study is to treat orthodox economics, in its various forms, with respect. The intention is not to dismiss lightly the insights which have been hard won by theorists and empiricists down the years. While the contention is that academic economics, in particular, is in need of changes which can reasonably be described as revolutionary, rather than gradual and evolutionary, successful revolutions do not generally sweep away all that has gone before. That is not what is required now.
What is required is to identify those ideas, models and theories which are useful; those which can be modified so that they become useful; and those which are so misleading as to be useless. Future generations of economists should embrace enthusiastically a diversity of methodological approaches and be open to ideas and evidence drawn from outside the economics profession, and most notably from psychologists, neuro-scientists, and from fellow social scientists.
Nevertheless, if the modern orthodox model is to be challenged, there is a need for at least a broad outline of an internally consistent and more empirically grounded model of ‘the economic system as it actually exists’ and the study of people as they are.
The thesis is that this is possible, that the essential elements of a much more useful macroeconomics already exist and in some cases have existed for a very long time, and that they are mainly to be drawn from a modern development out of Post Keynesian economics and from insights into decision making and well being developed by behavioural economists, and supported by neuroscience.
The conclusion will be that macroeconomic policy proposals should be informed by stock-flow consistent modern monetary theory; that a job guarantee, or employer of last resort scheme, is a proposal which is affordable and potentially able to stabilise an unstable economy; that the elimination of involuntary underemployment can raise the subjective well-being of millions of people and promote social inclusion; and that the framing of this and other policy proposals is of vital importance, and should not be neglected by economists and the politicians they advise.
Keywords: Macroeconomics, Behavioural, Postkeynesian
Subject: Business thesis, Economics thesis
Thesis type: Doctor of Philosophy
School: Flinders Business School
Supervisor: Associate Professor Philip Lawn
♦ Steven Hail: Economics for Sustainable Prosperity
(Binzagr Institute for Sustainable Prosperity)
1st ed. 2018 Edition, Kindle Edition
The central argument of this book is that the foundations for sustainable prosperity lie in an approach to economic management based on modern monetary theory and a job guarantee. This approach builds on the work of Keynes, Kalecki, Minsky, Davidson, Godley and other Post- Keynesian economists—as well as research by behavioral economists including Simon, Kahneman and Loewenstein—to explore the role that a permanent, equitable job guarantee could play in building an inclusive, participatory and just society. Orthodox (neoclassical) economics, in its various forms, has failed to deliver sustainable prosperity. An important reason for this failure is its lack of realistic foundations. It misrepresents both human nature and economic institutions, and its use as a frame for the development and assessment of economic policy proposals has had disastrous consequences for social inclusion and the quality of life of millions of people. This book discusses an alternative, more realistic and more useful set of economic foundations, which could deliver the opportunity of a decent quality of life with dignity to all.
From the Back Cover
“Steven Hail has coalesced disparate yet interdependent conceptualizations of real world phenomena in a brilliant and crucial way to produce a blueprint for sustainable prosperity. The book is essential reading for anyone searching for an alternative to the mainstream orthodoxy that has played no small part in the creation of an ecologically unsustainable and inequitable world.”–Philip Lawn, University of Newcastle, Australia; author of Resolving the Climate Change Crisis- The Ecological Economics of Climate Change
“This book should be a compulsory text for all undergraduate students, high-school students, students of life, policy makers, and of course economists themselves. In an era of tumult and political crisis, this book will tighten your grip on reality.”–Claire Connelly, award-winning journalist, Renegade Inc.
“Dr. Hail makes a compelling case for sustainability through a modern money lens that is accessible and useful for the 99%.”–Steven Grumbine, founder, Real Progressives
The central argument of this book is that the foundations for sustainable prosperity lie in an approach to economic management based on modern monetary theory and a job guarantee. This approach builds on the work of Keynes, Kalecki, Minsky, Davidson, Godley and other Post- Keynesian economists–as well as research by behavioral economists including Simon, Kahneman and Loewenstein–to explore the role that a permanent, equitable job guarantee could play in building an inclusive, participatory and just society. Orthodox (neoclassical) economics, in its various forms, has failed to deliver sustainable prosperity. An important reason for this failure is its lack of realistic foundations. It misrepresents both human nature and economic institutions, and its use as a frame for the development and assessment of economic policy proposals has had disastrous consequences for social inclusion and the quality of life of millions of people. This book discusses an alternative, more realistic and more useful set of economic foundations, which could deliver the opportunity of a decent quality of life with dignity to all.
About the Author
Steven Hail is a Research Scholar at the Binzagr Institute for Sustainable Prosperity and a Lecturer in the School of Economics at the University of Adelaide in South Australia. During the 1990s, he trained staff from many international banks and the Bank of England. He now teaches modern monetary theory and regularly writes magazine articles and appears in podcasts relating to MMT.
One thought on “Modern Monetary Theory, Monetary Sovereignty, Colonialism and Independence, and an Economics for Sustainable Prosperity”
Student loans explain the flawed neo liberal understanding of economics very well, in a nutshell.
The only purpose of such money is to finance the consumption of teachers, etc. to make it happen at that time. There cannot be any whatsoever connection with what a student is going to do working in a future time for totally different people. As if they had to in retrospect fill in the gap for consumptions five or ten years earlier, while that already happened and was managed by society very well, as it will be in future.
In other words the concept of debt time (which does not mean being resposible) is total crab. It makes no sense whatsoever
If there was a responsibility, you should even reverse that and account teachers for what productive jobs or people they delivered and reward or debt them for it, not the other way around. They should be bought by created money used for buying them, so they can consume/ not debt the student for it.
Extend that into the whole economy, and you finance consumption/ not labor, because it gets financed by consumption. From a market/ not a capitalist.
The market in democracy also is the government, in a hierarchy for funding the consumption of intended labor, which cannot be bought by a market. Like the police or the army, etc.