Still crickets on who gets first dibs on the created money. Sounds a lot like trickle down economics that the liberals supposedly mocked last decade.
When you borrow, credit is created and the money in circulation is expanded. Credit, according to Mitchell, is the determining factor in money supply. It isn't, again according to Mitchell and as commonly thought, expanded by Central Bank Bond buying. which does of course increase reserves.
What I am commenting on has to do with Treasury-Central Bank-Commercial Bank operations and nothing to do with" trickle down" economics, which is something entirely different, and not germane to this forum.
Walk me through the process of Treasury-Central Bank-Commercial Bank operations. Tell me at which point who receives more money and why.
So the ban on Federal Reserve buying bonds from the Treasury, except under QE, is lifted. Permanent QE on steroids ensues. Asset prices are bid but no consumer inflation and anybody holding cash is pauperised.
He lives in the US Virgin Islands because it is a tax shelter with nice weather This is the most famous proponent of MMT. Haha. These academics are such a joke.
That is slack in the economy and the government will create more money to employ them. Win-win situation. If they don't want to work, they will be forced to work.