Month: December 2018

Economists’/monetarists’ use of the term Money “Supply” reveals multiple levels of deep confusion. 1. Supply implies a flow. But they’re clearly referring to a “stock” of money: what’s tallied in monetary aggregates. 2. Even if you’re think of a stock of money: Supply is not a quantity, an amount, a numeric measure. It’s a psychological/behavioral…

I’m thinking this headline will raise some eyebrows in the MMT community. But it’s not really so radical. It’s just using the word money very carefully, as defined here. Starting with the big picture:  You can compare the magnitude of these asset-creation mechanisms here. (Hint: cap gains rule.) The key concept: “money” here just means a…