News Links 02/23/2012
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More on Savings and Investment | Modern Monetary Realism
Steve is pretty sharp. Godley’s theorem tells us we need some sector to run a deficit, but it doesn’t really have to be the government sector. It can easily be a private company or bank which runs this deficit, as long as it’s willing and able to do so, and as long as the rest of the world accepts the “NFA” created.
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FT Alphaville » Why MMT is like an autostereogram
In and of itself, money — the token — has no value. And this is largely why a fiat monetary system can work. The monetary unit doesn’t need to be a ‘valuable’ piece of metal. It’s who guarantees the token that matters. In modern times, that means the state.
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FT Alphaville » Yes Virginia, there really is Modern Monetary Theory
A five-page article in the Washington Post by Dylan Matthews over the weekend, finally thrust the theory of Modern Monetary Mechanics into the mainstream.All in all, we have to say, the article did a good job, at least when it comes to explaining the origins and basics of the theory. As a primer it worked well.
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España aportará unos 15.000 millones para el rescate de Grecia | Economía | EL PAÍS
Guindos señala que España pagará el 12% de los 130.000 millones de inyección. El primer ministro francés hace un llamamiento a la solidaridad de los contribuyentes.
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Die schwäbische Hausfrau als Kardinalfehler deutschen Denkens | Telepolis
Angela Merkels wirtschaftspolitisches Leitbild führt uns mit Vollgas in die Sackgasse
Mit ihrem Leitbild der “schwäbischen Hausfrau” prägt Angela Merkel das volkswirtschaftliche Denken der politischen Elite Deutschlands. Dabei eignet sich die schwäbische Hausfrau denkbar schlecht als Modell, mit dem man gesamtwirtschaftliche Probleme erörtern könnte. Mit der Eurokrise wurde die schwäbische Hausfrau sogar zum volkswirtschaftlichen Leitbild für die gesamte Eurozone. Dieser Prozess ist nicht nur wirtschaftspolitisch fragwürdig, sondern sogar brandgefährlich – auch für die echte schwäbische Hausfrau. -
Wolf Richter: Now a Housing Bubble in Germany « naked capitalism
In Hamburg, prices of existing apartments skyrocketed 14% year over year in January. In Munich, prices of new apartments jumped 12%. In Berlin, prices of existing apartments rose 10%. In Cologne, prices of existing apartments rose 9%. These numbers confirm what I’ve been hearing anecdotally for two years: that Germans were plowing their money into brick and mortar
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Strauss-Kahn Held in Police Custody – WSJ.com
Former International Monetary Fund chief Dominique Strauss-Kahn was taken into custody for questioning over allegations of a prostitution ring operating out of the French city of Lille and reaching as far as Washington, putting the onetime French presidential hopeful back into a harsh international spotlight. Mr. Strauss-Kahn could be cleared and perhaps considered a witness. Or he could face preliminary charges. Under the latter scenario, prosecutors say he could be released with or without bail, or remanded in custody.
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High Court to Hear College Affirmative-Action Case – WSJ.com
The Supreme Court agreed Tuesday to revisit affirmative action in state-college admissions, suggesting a 2003 ruling that narrowly permitted race-conscious policies in public higher education may face tough scrutiny from today’s more conservative court.
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More of China’s Millionaires Consider Moving Abroad – WSJ.com
while the party touts the economic success of the “Chinese model,” many of its poster children are heading for the exits. They are in search of things money can’t buy in China: Cleaner air, safer food, better education for their children. Some also express concern about government corruption and the safety of their assets.
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Modern Monetary Theory’s Big Weekend: The Problem with Surpluses – US News Business Blog – CNBC
If it bothers you that the government spends tax money on bridges to nowhere, you should apoplectic when the government takes tax money and spends it on nothing at all. That, of course, is exactly what happens when our federal government taxes more than it spends. The financial assets of the people are simply confiscated.
We should just have the right size of government to begin with. Government spending might be able to end a recession but it would be preferable to reduce taxes and just run a budget deficit.
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interfluidity » Restraining unit labor costs is a right-wing conspiracy
An increase in unit labor costs can mean one of two things. It can reflect an increase in the price level — inflation — or it can reflect an increase in labor’s share of output. The Federal Reserve is properly in the business of restraining the price level. It has no business whatsoever tilting the scales in the division of income between labor and capital.
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BBC News – Social messaging apps ‘lost networks $13.9bn in 2011’
Analysis firm Ovum studied global use of popular services like Whatsapp, Blackberry Messenger and Facebook chat.
It concluded that mobile operators must “work together to face the challenge from major internet players”.
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Simply looking at current account balances, Germany moved from running small current account deficits in 1996 to amassing large surpluses after 2001. In the meantime, Italy, Ireland, and France saw their current account balances move from surplus (in the case of Italy and Ireland, quite substantial ones, more than 3% of GDP) to deficit.
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