7 Responses

  1. Did PK download a copy? He’s waxing nostalgic this morning for 91% marginal tax rates, and invoking causality with respect to a kind of middle class heyday of 1947 to 1973.

    1. @Vincent,

      The issue with that fellow is that someone needs to sit with him and explain step-by-step endogenous money creation / destruction what would result in putting to bed the loanable funds market model. Once that part of IS/LM is blown off, he will need to find another closure of his mental models as microfoundations based on rational expectations are irrelevant if one cannot integrate agent choices “from now till the end of times”. This won’t work with endogenous money and no simplistic budget constraint based on “token money”. The outcome in step n+1 is dependant on step n which in turn depends on n+1, n+2,… In most of the cases there is no analytic solution what is kind-of obvious if we acknowledge that we (the “agents”) are not prophets and we can’t foresee the future.

      Then the only alternative to model the economy is what W. Godley did (based on Kalecki) – the step n depends on n-1 (adaptive expectations – agents think about n+1 based on n-1 and n) and the rest of PK’s Neo-Keynesianism goes straight to the rubbish bin of ideas where it rightfully belongs to together with astrology, phlogiston, “luminiferous aether”, creationism, homoeopathy, etc…

      There is no liquidity trap but there is debt deflation. PK has to acknowledge that. dM/dt generates a flow of money (a derivative of a stock/quantity is a flow).

    1. From Russ:

      It was on FREE ON Saturday.¬†It had massive downloads as a result. Book went onto be 1,650th best download at kindle for the day and kindle has millions of books.Amazon does not allow anything to free except for kindle books. But that is only for promotional purposes and they only you to do for a certain number of days per quarter. It is pure¬†genius¬†as I have informed Warren. When you tell someone that they can get something for free by simply going to link, there is no real incentive for them to follow through and so they don’t. But when you put a price on it, it has¬†perceived¬†value, and so when you then offer it for free, people go and get because they believe they are getting something of value. So you sell a book or two until you offer it for free and then you get a 1,000 downloads. Granted … not sure that every download is a read, but it sure as hell get people more excited about the idea. Also the number of downloads are counted in the relevance ranking so keep it on the first page of the relevant categories. Will try and give 7 days notice for each time we do it. Feel like a market maker. ūüôā¬†Current ranking:Amazon Best Sellers Rank:¬†#13,878 Paid in Kindle Store (See Top 100 Paid in Kindle Store)#2¬†in¬†Kindle Store¬†>¬†Kindle eBooks¬†>¬†Nonfiction¬†>¬†Business & Investing¬†>¬†Economics¬†>¬†Money & Monetary Policy#3¬†in¬†Kindle Store¬†>¬†Kindle eBooks¬†>¬†Nonfiction¬†>¬†Business & Investing¬†>¬†Industries & Professions¬†>¬†Banks & Banking#4¬†in¬†Books¬†>¬†Business & Investing¬†>¬†Economics¬†>¬†Money & Monetary Policy4 in printed books with¬†the¬†likes of Keynes, Greenspan etc in the category is amazing. ¬†The freebies on Saturday did great for the ranking.¬†A sour puss gave the book one star, but I have noticed that¬†rankings¬†have gone up since she wrote it. Maybe people read her¬†comments¬†about gold and all of a sudden became interested in the book. Have to see if gold is a influencing keyword

      1. @WARREN MOSLER,
        It is not an easy topic for an average person (and you probably know It better than anyone explaining the MMT stuff for years). 7DIF explains It in a more simple way I think. It’s not the downloads you are after.

        How many do you think will get It out of those downloads or almost get It? 10% is probably too optimistic?

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