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in this model government spending is not constrained by tax revenue?
Note that the Eurozone has been designed so that such a model does not apply to it.

Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010
by Migeru (migeru at eurotrib dot com) on Tue Nov 2nd, 2010 at 10:03:02 AM EST
[ Parent ]
True, but institutions could be changed if there was any will to do so. Unfortunately our political class is more than happy to be able to hide behind self-imposed necessity.

Von überall könnte das Volk, Urbrut alles Undemokratischen, Zelle des Terrors, über die gewählten Hüter von Wachstum und Wohlstand® kommen. - flatter
by generic on Tue Nov 2nd, 2010 at 10:08:26 AM EST
[ Parent ]
Well, there appears to be the will to change the treaties, just in the direction of digging deeper into the hole...

European Voice: Merkel secures major victory

EU leaders accepted that a temporary eurozone crisis facility set up in May had to be replaced with a permanent mechanism to avert the possibility of a recurrence of the problems faced by the eurozone earlier this year.

...

Merkel and Sarkozy had also insisted in their Deauville declaration that eurozone countries that persistently broke budget rules should lose their voting rights. But this was fiercely opposed by a large number of EU leaders during discussions on the conditions for the crisis mechanism on Thursday, the first day of the summit. José Manuel Barroso, the European Commission president, said the idea was "unacceptable".

...

The terms for the sanctions under new economic governance rules agreed at the summit made it harder to block penalties by requiring a weighted majority of member states to prevent sanctions.



Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010
by Migeru (migeru at eurotrib dot com) on Tue Nov 2nd, 2010 at 10:16:28 AM EST
[ Parent ]
They go to great lengths to make TINA a reality.

Von überall könnte das Volk, Urbrut alles Undemokratischen, Zelle des Terrors, über die gewählten Hüter von Wachstum und Wohlstand® kommen. - flatter
by generic on Tue Nov 2nd, 2010 at 10:32:53 AM EST
[ Parent ]
Mig:
Note that the Eurozone has been designed so that such a model does not apply to it.

This is the point MMT proponents are trying to make. These constraints are not inherent in the monetary system. They are "voluntarily" entered into for political reasons.


As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Nov 2nd, 2010 at 12:16:37 PM EST
[ Parent ]
Do you know where one can find out about MMT academics working in Europe?

Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010
by Migeru (migeru at eurotrib dot com) on Tue Nov 2nd, 2010 at 01:06:34 PM EST
[ Parent ]
Bill Mitchell has written extensively about the problems facing the EMU and the Eurozone, but he is based in Australia. I strongly suspect that were you to send him an e-mail he would be happy to respond. Or you could ask the question on his blog, billy blog. Bruce is also likely to know something about this.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Nov 2nd, 2010 at 01:40:22 PM EST
[ Parent ]

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