Daily Archives: August 25, 2019


Democracy in Chains: The Radical Right’s Stealth Attack on American Democracy

The Real News Network has the video Democracy in Chains: The Radical Right’s Stealth Attack on American Democracy.

In part one, Nancy Maclean reveals Nobel prize-winning economist James M. Buchanan as the architect of the Koch Brothers’ secret campaign to undermine public education, unions, and to reshape America


This is the exact reason that my alma mater, MIT, and I parted company when they built the David Koch funded cancer research center. They never would answer the question of what academic influence the Koch funding would have at MIT. I refused to attend my 50th alumni reunion for fear of having to sit through paeans to David Koch.

Also see my previous post about this book, Democracy In Chains.


Central banks have unlimited ammunition – if they chose to use it

Financial Review has the article Central banks have unlimited ammunition – if they chose to use it.

It is time to fundamentally rethink the conventional macroeconomic policy framework in preparation for future economic downturns. Monetary and fiscal policy need to be better aligned and coordinated so that they can be mobilised quickly and effectively when needed, and in the right combination. MMT can play a useful role in that debate. But economists on both sides have to put down their rhetorical pitchforks first.

If you read the whole article, you will see much of my own view. The article reminds us that the restrictions that Congress has put on the Fed are an unhelpful obstruction to the full use of the fiscal policy that would be available to the government if there had been no such restrictions.

It just occurred to me that saying that central banks have unlimited ammunition leaves the wrong impression. Central governments have unlimited ammunition, but the ammunition is not completely in the hands of the central banks. Central banks are a part of the central government, but they don’t have some of the powers that the rest of the government has.