Meta tags:
description=Posts about British Labour Party written by petermartin2001;

Headings (most frequently used words):

share, this, the, to, archives, british, left, uk, budget, more, and, people, tag, labour, party, job, guarantee, problems, from, perspective, autumn, statement, neoliberal, nonsense, mmt, economic, growth, we, need, deficits, because, want, buy, gilts, richard, murphy, what, is, quantitative, easing, needs, discuss, than, membership, of, eu, how, win, lose, elections, never, mind, deficit, just, vote, for, recovery, balancing, tony, benn, 1925, 2014, an, honourary, mmter, pages, topics, blogroll, past, posts, podcasts, recommended, links, twitter, videos, info,

Text of the page (most frequently used words):
the (408), and (131), new (96), that (85), opens (80), window (80), share (70), they (64), for (56), would (45), are (42), government (42), economic (41), #labour (41), can (40), have (37), mmt (37), about (36), economy (36), economics (35), not (35), this (34), money (34), will (33), all (31), there (30), more (29), who (28), but (27), what (26), want (26), people (26), with (25), just (25), like (24), their (24), party (24), deficit (23), was (23), email (21), comments (20), don (20), left (20), posted (20), pinterest (20), reddit (20), facebook (20), print (20), tumblr (20), linkedin (20), could (19), british (19), those (19), why (18), how (18), which (17), make (17), budget (17), too (17), say (17), modern (16), time (16), think (16), than (16), need (16), has (16), much (16), you (15), from (15), very (15), into (15), them (15), warren (14), surplus (14), debt (14), growth (14), theory (13), real (13), good (13), enough (13), unemployment (13), right (13), same (13), our (13), billion (13), even (13), monetary (12), bank (12), its (12), greece (12), needs (12), spending (12), general (12), were (12), some (12), 2015 (12), most (12), tokens (12), loading (11), everyone (11), one (11), vote (11), austerity (11), problems (11), now (10), other (10), create (10), many (10), work (10), out (10), problem (10), way (10), post (10), tagged (10), link (10), friend (10), should (10), had (10), then (10), policy (9), when (9), living (9), never (9), trade (9), thinking (9), been (9), back (9), being (9), pqe (9), deadly (8), frauds (8), easing (8), balance (8), wrong (8), elections (8), end (8), only (8), because (8), keynesian (8), system (8), get (7), mosler (7), run (7), moslers (7), seven (7), job (7), every (7), sector (7), euro (7), doesn (7), nothing (7), muddled (7), watch (7), years (7), political (7), greek (7), banks (7), big (7), full (7), again (7), happen (7), extra (7), poverty (7), might (7), workers (7), inflation (7), comment (6), england (6), know (6), national (6), guarantee (6), tony (6), benn (6), inflationary (6), next (6), part (6), maybe (6), ever (6), well (6), fiat (6), currencies (6), quantitative (6), really (6), pay (6), european (6), borrowings (6), lendings (6), wouldn (6), argue (6), levels (6), won (6), election (6), still (6), depressed (6), example (6), tory (6), george (6), wealth (6), deficits (5), thing (5), before (5), give (5), governments (5), else (5), taxes (5), business (5), currency (5), discuss (5), income (5), little (5), britain (5), revenue (5), his (5), john (5), win (5), another (5), saying (5), employment (5), best (5), these (5), chartalism (5), central (5), let (5), anything (5), anyone (5), hear (5), black (5), crisis (5), feel (5), buy (5), change (5), any (5), idea (5), may (5), richard (5), osborne (5), question (5), wage (5), though (5), society (5), wordpress (4), com (4), required (4), balanced (4), running (4), germany (4), says (4), simple (4), something (4), start (4), promises (4), taxation (4), see (4), world (4), trillion (4), bad (4), large (4), own (4), isn (4), progressive (4), membership (4), positive (4), known (4), neo (4), arguments (4), debts (4), mind (4), recovery (4), bonds (4), does (4), high (4), except (4), bill (4), whatever (4), education (4), old (4), few (4), state (4), cuts (4), tax (4), didn (4), going (4), works (4), parties (4), united (4), far (4), mean (4), rightly (4), cost (4), believe (4), europe (4), unemployed (4), young (4), wish (4), seen (4), perspective (4), allow (4), either (4), tories (4), possible (4), course (4), last (4), bit (4), baby (4), sitting (4), murphy (4), gilts (4), industry (4), due (4), ago (4), happy (4), over (4), higher (4), website (3), view (3), log (3), sign (3), already (3), free (3), blog (3), three (3), follow (3), twitter (3), august (3), things (3), hard (3), control (3), fiscal (3), choose (3), budgets (3), means (3), easy (3), resources (3), worse (3), person (3), london (3), market (3), 2014 (3), owes (3), life (3), without (3), making (3), fast (3), country (3), stand (3), fallacy (3), built (3), truth (3), repaid (3), long (3), loan (3), repayments (3), destroy (3), credit (3), pounds (3), must (3), demand (3), two (3), lose (3), come (3), help (3), australia (3), euros (3), understand (3), story (3), eurozone (3), fact (3), economists (3), economies (3), commercial (3), thin (3), air (3), creation (3), mitchell (3), numbers (3), balancing (3), also (3), heard (3), principle (3), jobs (3), happening (3), instead (3), look (3), yet (3), different (3), deliver (3), directly (3), reducing (3), services (3), possibly (3), govt (3), usa (3), aren (3), household (3), doubt (3), lot (3), having (3), public (3), situation (3), probably (3), euroland (3), incomes (3), almost (3), quarter (3), since (3), completely (3), policies (3), spain (3), remember (3), main (3), least (3), largely (3), both (3), message (3), rather (3), better (3), less (3), likely (3), quite (3), leave (3), support (3), including (3), five (3), along (3), lines (3), referendum (3), imbalance (3), interest (3), keep (3), wages (3), however (3), off (3), words (3), hoarders (3), method (3), council (3), reason (3), used (3), provide (3), achieve (3), sell (3), made (3), hand (3), where (3), doing (3), car (3), cars (3), plan (3), loss (3), 100 (3), year (3), buffer (3), stock (3), others (3), site (2), content (2), subscribed (2), subscribe (2), account (2), feed (2), financial (2), balances (2), stephanie (2), kelton (2), videos (2), innocent (2), links (2), randall (2), wray (2), sometimes (2), impossible (2), smarter (2), joe (2), wants (2), anyway (2), ultra (2), explanation (2), bond (2), wasting (2), store (2), your (2), devalue (2), unfunded (2), such (2), 1925 (2), honourary (2), mmter (2), haven (2), mainstream (2), mars (2), jupiter (2), half (2), cannot (2), earth (2), concept (2), plans (2), across (2), quantative (2), printing (2), crash (2), books (2), slightly (2), line (2), liberal (2), bbc (2), note (2), beans (2), grow (2), writes (2), gfc (2), figures (2), show (2), guardian (2), dry (2), point (2), humour (2), part2 (2), shortage (2), nearly (2), gets (2), got (2), lack (2), germans (2), function (2), future (2), lemmings (2), yes (2), private (2), process (2), politics (2), scary (2), 000 (2), discussion (2), weimar (2), republic (2), zimbabwe (2), bomb (2), lesson (2), mechanics (2), human (2), uncategorized (2), test2 (2), archives (2), passionately (2), nhs (2), second (2), month (2), after (2), manifesto (2), clear (2), said (2), direct (2), power (2), hands (2), democratic (2), single (2), generation (2), final (2), defeat (2), core (2), weapon (2), accept (2), died (2), yesterday (2), first (2), march (2), madness (2), potential (2), cretins (2), makes (2), increased (2), simpler (2), ability (2), reduce (2), towards (2), usually (2), gsp (2), payments (2), overseas (2), goods (2), paid (2), speaking (2), fix (2), difficult (2), topic (2), etc (2), finances (2), kingdom (2), union (2), inequality (2), nor (2), getting (2), produce (2), healthy (2), present (2), worried (2), today (2), youth (2), south (2), currently (2), suffers (2), average (2), 2007 (2), unacceptable (2), pan (2), solidarity (2), scandal (2), joblessness (2), insisting (2), advocates (2), clearly (2), critical (2), powers (2), issue (2), normally (2), sensible (2), consider (2), events (2), highly (2), particular (2), pro (2), add (2), whole (2), choices (2), true (2), principles (2), offering (2), hope (2), working (2), chance (2), alternatively (2), aim (2), persuade (2), home (2), expect (2), naturally (2), offer (2), apply (2), try (2), thatcher (2), according (2), received (2), presumably (2), move (2), middle (2), itself (2), progressives (2), brought (2), wing (2), areas (2), supposedly (2), moment (2), remain (2), low (2), rates (2), users (2), engaging (2), cash (2), kept (2), deposit (2), exporters (2), selling (2), lend (2), wealthy (2), accumulate (2), neither (2), pacified (2), reward (2), circle (2), spent (2), token (2), night (2), existing (2), otherwise (2), creating (2), exchange (2), price (2), complications (2), powerful (2), mcdonnell (2), aware (2), deliberately (2), totally (2), answer (2), put (2), rate (2), called (2), important (2), evidence (2), redistribution (2), clause (2), secure (2), brain (2), fruits (2), equitable (2), distribution (2), thereof (2), cake (2), capitalist (2), explain (2), 2008 (2), keith (2), joseph (2), close (2), early (2), meeting (2), social (2), myself (2), later (2), decade (2), twice (2), experience (2), falls (2), forward (2), century (2), under (2), conditions (2), november (2), attributed (2), excuse (2), red (2), redwood (2), 105 (2), autumn (2), statement (2), fraudsters (2), benefits (2), live (2), choice (2), between (2), reasonable (2), started, design, name, write, collapse, bar, manage, subscriptions, reader, report, privacy, join, subscribers, entries, info, sectors, mct, fields, institute, seminar, recommended, prof, alpha, omega, 2012, podcasts, believed, six, breakfast, lie, controls, short, department, analogy, extension, card, worth, protection, racket, pound, myth, cardboard, box, victim, forces, gone, unnoticed, thoughts, japanese, beyond, survive, reactionary, rash, flat, speed, slow, tesco, announces, open, skips, steve, keen, explains, simply, considered, eta, 2016, revaluing, swiss, franc, responses, common, newsnight, beancounters, plant, liberalism, virus, infects, nationalisation, costs, privatisation, raises, decades, philip, booth, daily, telegraph, chuka, umunna, pre, road, ahead, rebalance, larry, elliot, increase, greg, jericho, reliant, christine, lagarde, imf, claims, creates, pressure, andrew, lilico, hugh, pym, coloured, sweets, value, mmters, adair, turner, antidote, nonsensical, gaining, followers, babies, keeping, quiggin, russia, skills, dollars, ious, logically, promise, bearer, fives, ten, fault, hasn, battle, commences, game, unions, german, funds, biblical, electors, sold, lemon, balls, wreck, 2020, imperialism, fiction, doctor, dalek, invasion, planet, 2150, version, classical, termed, irrelevant, lending, leads, removal, burden, children, grandchildren, boots, booms, busts, 228, 300, 281, research, allegedly, supported, push, discredited, online, grows, longer, probability, comparison, involving, approaches, form, independent, scotland, quiz, four, model, looming, demographic, fairy, past, posts, robert, nielsen, center, universe, ralphonomics, perspectives, mugwump, network, simplified, mike, norman, rights, journal, billy, alittleecon, alternative, spoken, blogroll, topics, pages, nov, 2026, spoke, revolution, removed, argued, killing, building, hospitals, interview, gave, michael, moore, sounds, great, wartime, baghdad, exceeded, adopt, peacetime, health, care, looked, proud, 1945, interwar, slumps, acts, god, result, men, behaved, totalitarian, oligarchy, heart, felt, responsibility, nation, fight, battles, victory, knew, quotes, cabinet, minister, leader, inspiration, sadly, missed, tribute, minute, history, liberals, him, flow, ben, bernanke, forcing, flows, maximise, fall, previously, round, failures, stage, related, poorer, supposed, coming, domestic, essentially, sources, exported, affect, collected, originally, comes, sovereign, issuers, 10k, generally, coupled, earnings, times, logic, applied, countries, afterwards, wonder, draws, near, presidential, campaigns, underway, atlantic, shortly, apologies, grasp, accuse, opponents, holes, nations, likened, barack, obama, argentina, head, tail, pushing, anywhere, heaven, ideal, happens, firstly, secondly, worry, surging, investors, securities, chunks, funny, ardent, strongly, hardship, expired, parliament, complete, absence, opposition, laws, labourlist, major, chosen, ignore, significant, talk, april, once, understanding, become, apparent, implied, conclusion, acknowledge, appealing, reality, historic, despair, winning, distinctive, doorstep, include, sure, sway, democrats, republicans, limited, success, moved, politically, difference, counterproductive, justification, disillusioned, becoming, involved, effort, argument, compulsory, voting, aussies, unusual, respect, pragmatic, terms, reduction, voted, switch, sides, picture, maggie, front, cover, did, jeopardise, calculations, electorate, 7th, prepared, achieved, navel, gazing, circles, recently, went, week, done, prevent, occurrence, pretty, suffered, unexpected, personality, trick, france, connection, military, coup, uproar, marches, action, believing, everything, current, level, integration, intend, against, measures, seduced, socially, organisation, recent, shaking, shaken, step, actually, syriza, band, maoists, trotskyites, communists, shell, shocked, silence, websites, correct, expanded, debate, swings, advocacy, continued, perhaps, natural, traditional, pool, down, maintain, worker, discipline, peoples, moving, lots, stored, combination, attractive, illegal, borderline, transactions, hide, easily, monitor, starts, careful, shouldn, scared, recycled, through, banking, suppose, hoards, safes, boxes, borrow, biggest, spend, earn, effectively, culprits, tend, arguably, rewards, needed, issuing, restart, lent, lenders, saved, piggy, refused, inject, equivalent, necessary, functioning, save, readily, equal, measure, willingness, receive, sitters, decided, fairly, quickly, cease, ones, stockpile, object, cause, carries, mention, term, coined, examples, ott, nevertheless, objection, addressed, overt, financing, issued, stimulate, activity, whereas, conventional, primarily, liquidity, institutions, asset, bubbles, distortions, remedy, recession, depression, deflation, stop, savings, non, discourage, saving, unattractive, theoretically, resolved, admit, fixed, tell, take, absolutely, slightest, reads, piece, news, finally, compel, intelligent, views, information, becomes, avaialble, light, published, interesting, article, several, points, runs, someone, surpluses, illiteracy, charter, october, wednesday, degrees, proverbial, bigger, surviving, meagre, rations, cut, matter, discussing, mopping, fine, feeling, type, critics, patch, establish, meaningful, minimum, underemployment, homeless, aremore, relying, food, 1980, students, grants, wealthier, notwithstanding, difficulties, told, sir, politician, tomargaret, clashed, student, criticised, overly, concerned, existed, solved, productive, allowing, creators, rein, unhindered, interference, inconceivable, rest, unresolved, green, movement, forever, citing, implies, exponential, consumption, finite, available, sooner, context, varies, typically, gdp, per, approximately, exactly, product, ingenuity, group, task, seeing, struggle, consume, relatively, expensive, afford, case, gain, intelligence, continually, improved, each, production, techniques, improve, efficiently, fewer, fraction, variety, wedded, notion, indeed, centuries, 19th, forebears, looking, inscriptions, headstones, cemetery, reading, chapters, dickens, novel, provides, harsh, endured, infant, mortality, women, prime, childbirth, improvements, notice, negotiate, businesses, products, marketplace, elected, incorrectly, einstein, expecting, results, mad, plain, kind, excuses, similar, failed, following, 2010, blame, lib, dems, cared, sum, saves, couple, failing, inevitably, revenues, expected, north, sea, oil, war, east, unless, somehow, turned, aspect, ignored, grand, sustain, net, annual, basis, send, downward, spiral, trying, untrue, extent, trading, partners, admire, precise, treasury, forecasts, external, international, find, import, reach, 2019, total, estimates, paying, economically, coherent, taxing, agreeable, opinion, sense, inconsistent, arithmetic, neoliberal, nonsense, leftist, contributing, applies, shift, essential, parts, while, concepts, useful, shared, address, addressing, richer, fair, looks, devils, detail, comfort, aggressively, pursue, around, pushed, language, promote, contribution, bales, wool, kilos, butter, afraid, perceive, individuals, threatening, mothers, taking, disputes, mentally, ill, capability, always, agree, btw, shows, http, www, 3spoken, html, incidentally, posting, prompted, neil, wilson, suspect, fear, turn, likelihood, depend, pays, relative, locality, depending, rental, property, proposed, above, definition, ensure, receipt, temporarily, period, occur, months, play, apprenticeship, schemes, relaxation, purpose, training, combined, meaning, stay, alive, enjoy, program, imagine, advocated, leading, names, desirable, december, tag, skip,

Text of the page (random words):
g sector the jg would be a very powerful weapon and used in the hands of the fraudsters to reduce wages we could for example have a jg now in parts of the eu which paid say 7 ph or whatever was just slightly higher than social benefits so in greece we d have 25 on a jg instead of 25 unemployed there s no way any of us with a leftist perspective would support that if anyone is contributing to society by working the old principle of labour s clause 4 applies to secure for the workers by hand or by brain the full fruits of their industry and the most equitable distribution thereof that may be possible etc having a jg even on a so called living wage doesn t change that one bit share this share on x opens in new window x email a link to a friend opens in new window email share on linkedin opens in new window linkedin share on tumblr opens in new window tumblr print opens in new window print share on facebook opens in new window facebook share on reddit opens in new window reddit share on pinterest opens in new window pinterest like loading 12 comments posted in mmt general tagged austerity economics british labour party central bank chartalism economic system economy job guarantee labour party economics modern monetary theory post keynesian economics warren mosler the uk autumn budget statement more neoliberal nonsense posted on november 25 2015 8 comments the autumn statement would not be so bad if it was economically coherent with the spending and taxing plans agreeable or otherwise according to one s political opinion however it does not make any sense not only does it not add up it is inconsistent with all the principles of arithmetic the right wing tory mp john redwood makes the point in total the new estimates show us paying an extra 105 billion in tax over the five years george osborne says we will reach a surplus of 10 1 billion in 2019 20 note it s not just about 10 billion its 10 1 billion we ve all got to admire just how precise george and his treasury economists can be about these five year forecasts as if there s no chance of this happening with the uk running a 90 billion deficit in its external deficit due to trade and other international payments it would mean that the uk economy would have to find 100 billion every year to pay the import bill and also provide the government with its 10 billion surplus this presumably is close enough to john redwood s extra 105 billion in tax george osborne says that britain will be out of the red and into the black which is completely untrue these figures mean the british economy will be in the red to the extent of 100 billion to pay for the govt being 10 billion in the black and britain s overseas trading partners being 90 billion in the black it can t possibly happen that way unless somehow the trade deficit can be turned into a trade surplus and that aspect is totally ignored in george osborne s grand plan the uk economy could not sustain a net loss of 100 billion even for one year never mind on an annual basis george osborne will only send the economy into a downward spiral trying to achieve the impossible an economy in a depressed state will also deliver depressed levels of taxation revenue in a couple of years time the excuse for the plan failing as it inevitably will is likely to be that even though the government has kept spending under control taxation revenues will have not come in as expected this will be attributed to problems in the eurozone problems with world trade problems with loss of revenue from north sea oil a new war in the middle east maybe in other words the same kind of excuses as were put forward after the last similar plan failed in the years following the tory win in 2010 except the govt could blame the lib dems then if the government cared to look for a reason rather than an excuse they would explain that their deficit has to be the sum of what everyone else saves they don t have direct control of that there s a saying usually incorrectly attributed to einstein about doing the same thing over and over but expecting different results being a sign of madness are the tories mad though or just plain bad share this share on x opens in new window x email a link to a friend opens in new window email share on linkedin opens in new window linkedin share on tumblr opens in new window tumblr print opens in new window print share on facebook opens in new window facebook share on reddit opens in new window reddit share on pinterest opens in new window pinterest like loading 8 comments posted in mmt general tagged austerity economics borrowings and lendings british labour party chartalism economic system government government of the united kingdom mmt money post keynesian economics trade imbalance uk elections mmt and economic growth posted on november 19 2015 4 comments most economists including the mmt variety are wedded to the notion that economic growth in itself is a good thing of course it has indeed been that over the last centuries few of us would be happy living under the same conditions as our 19th century forebears for example looking at inscriptions on the headstones of an old cemetery or the reading of a few chapters of a dickens novel provides enough evidence of the harsh living conditions that most endured then infant mortality was high many women died in their prime due to complications of childbirth improvements have largely been made possible by economic growth in our modern economies we notice that unemployment falls when economies grow workers can negotiate higher wages as businesses can sell their products and services into marketplace everyone is happy governments get re elected economic growth is largely a product of human ingenuity give a group of workers the task of doing something like making a car for example when they have no experience of even seeing a car before and they ll struggle to do it the cars they produce won t be very good they will consume a lot of labour power and be relatively expensive so that only the very wealthy can afford them that was the case in the early years of the car industry but as the workers gain more experience and apply their intelligence to the problems at hand the cars are continually improved the labour time to make each one falls as production techniques improve too fast forward to where we are now and we have very good cars made very efficiently by far fewer workers at a fraction of the cost of a century ago it is the same story in just about every industry we can think of those in the green movement question that we can have economic growth forever citing the fact that economic growth implies an exponential consumption of the finite resources which are available to us it s a good question and it s one we are going to have to answer sooner or later we might want to make a start on doing that now in the context of our present economic problems in the uk and europe we have seen no real economic growth since the 2008 gfc the situation varies from country to country but typically gdp per person is just about what is was a decade ago even so this is still approximately twice what it was a generation ago so is everyone twice as happy now as they were then or are they exactly as happy as they were a decade ago of course they aren t there s much more unemployment and underemployment now there are more homeless people than there were there aremore people relying on food banks the state of the nhs and the education system is worse than it was in 1980 students still had grants but now they don t even though supposedly we are a much wealthier society notwithstanding the difficulties brought about by the 2008 crash this is not what i remember being told by sir keith joseph a tory politician very close tomargaret thatcher in the early 70 s when we clashed at a student meeting where he was speaking he criticised me in particular and the left in general for being overly concerned with the redistribution of existing wealth and not enough about the creation of new wealth his message was that social and economic problems of which we were both aware existed were best solved by having a more productive economy and allowing the wealth creators free rein to create wealth unhindered by state interference it would have been inconceivable to the rest of the meeting and maybe even to keith joseph and myself that some 40 years later we d have had the levels of growth we ve had but still the same economic problems would remain unresolved we don t need degrees in economic theory to know that if the proverbial economic cake is much bigger but there are still those surviving on meagre rations that the imbalance must be due to how that cake is cut the question of who gets what does matter when discussing economics economic growth has to be more than about mopping up surplus labour in a capitalist economy if we do achieve some growth that s fine we all can feel a bit better off if we don t we should all feel that we are neither better nor worse off instead of as now feeling that we have to run just to stand still do we need a different type of economy for that to happen the critics of mmt might argue that it s little more than a patch for the problems of a capitalist economy i wouldn t accept that but we do have to explain how mmt can work for everyone if we are to establish meaningful links with the political left a job guarantee on a minimum wage won t be enough for many if we do want that we have in the words of labour s old clause 4 to provide an economic theory which can help to secure for the workers by hand or by brain the full fruits of their industry and the most equitable distribution thereof share this share on x opens in new window x email a link to a friend opens in new window email share on linkedin opens in new window linkedin share on tumblr opens in new window tumblr print opens in new window print share on facebook opens in new window facebook share on reddit opens in new window reddit share on pinterest opens in new window pinterest like loading 4 comments posted in mmt general tagged austerity economics black wednesday british labour party chartalism economic growth economic inequality economic system employment labour party economics modern monetary theory post keynesian economics redistribution of wealth we need deficits because people want to buy gilts richard murphy posted on october 13 2015 9 comments richard murphy published an interesting article on budget surpluses and the economic illiteracy of the fiscal charter yesterday in which he made several important points such as we need deficits because people want to buy gilts and if the government runs a surplus someone else has to run a deficit absolutely right and well said richard i hope everyone who s even the slightest bit worried about our deficit and so called national debt reads this very important piece of what will be news to them maybe john mcdonnell has finally seen the light there s nothing wrong with a a change of mind when new evidence and new arguments compel that intelligent people change their views all the time as more information becomes avaialble the question to be resolved and i must admit i m not totally clear on the answer is if we should sell gilts is the fact that people want to buy them a good enough reason to sell them why can t we just allow people to put their money on deposit offer the a fixed interest rate say 2 and tell them that s it take it or leave it some would say 2 was way too high we should pay 0 so what will happen then if we discourage people saving deliberately creating enough inflation to make 0 or even 2 very unattractive we ll theoretically have no deficits at all because government deficit savings of the non government is that what people really want is george osborne aware that what he needs to do to achieve his surplus is create more inflation and stop selling gilts share this share on x opens in new window x email a link to a friend opens in new window email share on linkedin opens in new window linkedin share on tumblr opens in new window tumblr print opens in new window print share on facebook opens in new window facebook share on reddit opens in new window reddit share on pinterest opens in new window pinterest like loading 9 comments posted in mmt general tagged austerity economics bank of england borrowings and lendings british labour party deflation fiat currencies government debt john mcdonnell labour party economics mmt modern monetary theory national debt post keynesian economics quantitative easing richard murphy uk economy what is people s quantitative easing posted on august 16 2015 4 comments pqe sometimes known as overt monetary financing is the process of creating new money issued by the central bank in exchange for government bonds this is then directly spent into the economy to stimulate economic activity whereas conventional quantitative easing is primarily to provide liquidity to banks and other financial institutions some might say it is to give them money which can create asset price bubbles and other price distortions pqe is much simpler and free of many complications pqe can be part of powerful fiscal policy to remedy the problems of recession and depression mention pqe however a term coined i believe by richard murphy and it won t be long before zimbabwe and the weimar republic will be used as examples of why it s not a good idea that s ott but nevertheless the objection of possible inflation needs to be addressed pqe could possibly cause inflation all government spending as with all spending deficit or otherwise carries an inflationary potential deficit spending is necessary to keep the economy functioning when users of the currency wish to save some of it those who doubt that might just like to consider the very simple economy of a baby sitting circle if everyone in the circle readily spent a token and received a night s baby sitting in equal measure to their willingness to do a night s baby sitting to receive a token there d be no problem at all but say for whatever reason some of the sitters decided to accumulate tokens fairly quickly there would be a shortage and the system would cease to function there would be a demand from those without tokens that the baby sitting council should issue extra ones those with a stockpile of tokens would object saying the printing of new tokens would devalue their existing tokens if the hoarders lent the tokens back to the council they could be pacified with some reward just as lenders of pounds to the government are pacified with a reward of extra pounds but if the hoarders of the tokens saved them in a piggy bank and refused to lend them back all the council could do would be to create new tokens and inject them into the system this would be the equivalent of pqe is one method more or less inflationary than the other there s not much in it arguably pqe would be less inflationary because there are no extra rewards needed if the issuing o...