Should be available by this weekend.

33 Responses

  1. It’s available now (already on my iPhone) and only via Kindle. Prime clients can loan for free. Book only costs $2.99. Buy for others!

      1. @Dan,

        At the back of the “Soft Currency Economics II” e-book. I think everyone should read the speech first then read the book. The speech is after the Conclusion chapter.

  2. Erratum on the book so far:

    Figures 3 and 4 should be rotated properly. Whoever did the e-book didn’t check it.

    Warren, I thought the Fed DID pay interest on required reserve balances. You wrote, “Reserve requirements also result in an implicit tax on banks because reserves held at the Fed do not earn interest. Therefore, reserve requirements reduce the revenues of the member banks.”

    Wasn’t that from your previous version of this article?

      1. @WARREN MOSLER,

        Then you should add “(1994)” around these facts if you don’t want to rewrite it. The book starts out addressing 2012 (great job, BTW) and then slips into 18 years ago without notice, if you catch my drift.

  3. Erratum on the book so far:
    Under the section Federal Government Spending, Borrowing, and Debt

    The government spends money and then borrows what it does tax, because deficit spending, not offset by borrowing, would cause the fed funds rate to fall.

    When it should read: …then borrows what it does not tax…

  4. I thought, fundamentally, (govt spending – taxes) went to private sector savings/wealth. Now you seem to be saying govt spending must equal taxes + govt borrowing as though it were a state govt. Very confusing for me.

    1. Congress had decided the US Tsy can’t have a negative balance in its fed account, so it sells tsy secs to comply with this Congressional mandate, and therefore taxes + tsy secs issued = total govt spending as a consequence of this institutional structure

      1. Alright, it’s a choice. Then, assuming no leakage in the equation, all growth has been made possible by govt borrowing, with no net money creation. This doesn’t strike me as a sustainable mode of operation, but what do I know? You are a patient teacher, thanks for that.

      2. does’t read like you’ve read the 7dif on this website?

        fiscal drag/unemployment is when the govt doesn’t spend enough to cover the need to pay its tax and accommodate an residual ‘savings desires’ (desire to accumulate net financial assets of that currency).

        It’s best thought about removing drag, not adding stimulus.
        Taxation causes drag equal to the tax + savings desires, which don’t otherwise exist.
        Govt spending ‘offsets’ that drag

      3. Haven’t finished it yet (felt diminishing returns half way thru; not your fault, I am the inpatient kind). With no prior knowledge of economics of any kind, it’ll probably take some time for me to sort things out. I had thought I understood your basic premise, but that didn’t keep me from making the above mistake. But I’ll get there.

      4. @Nihat, The most important part of Warren’s 7dif book is the last section; namely, what you want the economy to do, what it can do. Do not be fooled by the apparent simplicity of the enumerated suggestions. He says in one sentence what financial writers waste feet saying. The issue is public purpose.

      5. MRW, yeah, I’d had gotten that ‘public purpose’ thing right at the outset. As for simplicity, what can I say? Elegance is not for peasants to appreciate? 🙂 (Well, I in fact appreciate it.)

      6. @Nihat,

        I think people imagine this closed money supply where if you borrow money someone else has less.

        When in fact money to buy government bonds comes from government spending. Say, goverment deficit spends 100 billion, first it spends 100 billion, then (or simultaneously) it sells bonds worth 100 billion.

  5. Please make this available as a pdf file. Paste a Paypal button there and charge the same $2.99 as for the Kindle. It would be nice for those of us outside the US to have a printable item.

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