dgp4indy

Modern Monetary Theory

Independent Scotland Should Avoid Sterlingisation

"A strong Scottish Government with its own currency, with clear willpower and the economic freedom to act in the best interests of the country can ride out such storms with ease because the policies of such a government will be economically fundamentally sound and it will, because it has that currency, have the full range of measures it requires to implement them.  But Scotland without its own currency will be in the exact opposite position; it will be fundamentally economically weak, forever destined to run every aspect of its affairs with the sole goal of “keeping parity with the pound”.  What a sorry country that would be. The SNP has to be wise enough to reject such a prospect. I hope its membership is." Professor Richard Murphy.
http://www.taxresearch.org.uk/Blog/2018/07/01/sterlingisation-is-how-to-destroy-hope-for-an-independent-scotland/

National Finances Are Not Household Finances

As part of the lecture series between UCL Institute for Innovation and Public Purpose (IIPP) and the British Library, Professor Stephanie Kelton speaks on why a government budget should not be looked at in the same way as a household budget. Drawing on her experience as the Chief Economist on the US Senate Budget Committee, Stephanie Kelton gives a beginner’s class on public deficits and what (almost) everyone is missing in the debate over the government’s budget. Is the government’s budget really just like a family budget? (Teaser: It’s not!)
https://www.youtube.com/watch?v=6IBEoWSiTHc&app=desktop

Campaign For A Scottish Currency

“Both Iceland and Greece have faced enormous financial and economic crises in recent times,” he says. “Iceland recovered quickly and its biggest problem is now that some parts of its economy are actually growing too fast. Greece is stuck in a downwards spiral.”

“So what is the difference between these two crises? Well the most fundamental difference was that tiny Iceland ... had its own currency and a central bank. It could use the full range of economic powers including monetary powers ... and fiscal powers ... to defend its economy.”

He says that Greece, by contrast, “had no control over its monetary policy and effectively no control over its fiscal policy. So instead of defending itself from the crisis it was forced to do exactly what foreign bankers told it to do.”
http://www.thenational.scot/news/16298740.Common_Weal_to_launch_campaign_for_Scottish_currency/?ref=rss

  1. A Modern Monetary System