Balance of payments constraints

Balance of payments constraints

Soovitan kindlasti lugeda MMT huvilistel seda.  Bill Mitchell adresseerib Kaldori maksetasakaalu argumenti. See ei ole ainult Kaldori argument muidugi, Paul Davidson ja isegi Keynes on seda maininud minu mäletamist mööda. See on põhiline argument alati eurost loobumise vastu näiteks. Praktiliselt kogu vasakpoolkera kasutab seda argumenti alati.

…….MMT does not advocate net public spending per se. There are some growth strategies which will be unsustainable. Overall, a model of long-run growth and sustainable development requires a careful balancing of internal and external forces.

The government can make use of this space to pursue economic growth and rising living standards even if this means expansion of the CAD and depreciation of the currency.

While there is no such thing as a balance of payments growth constraint in a flexible exchange economy in the same way as exists in a fixed exchange rate world, the external balance still has implications for foreign reserve holdings via the level of external debt held by the public and private sector.

Please read my blog – Modern monetary theory in an open economy – for more discussion on this point.

In the next blog in this series I will address the issues of less developed countries which though their governments have currency-issuing capacity, have to import all their, say, food and energy. What happens then?

I will outline a role for a major restructuring of the multinational institutional framework, which includes scrapping the World Bank and its other neo-liberal sibling, the IMF and establishing a progressive agency designed to ensure that balance of payments issues do not stop nations from being able to both fully employ their workforces but also ‘feed and clothe’ them adequately.

We will explore the ultimate constraints on a nation’s prosperity, which is a central aspect of MMT.

About Kristjan

Defitsiidi terrorismi vastase pataljoni eriüksuslane (finantsignorantsuse vastu võitlemise osakond). Treening: MMT, postkeinsism, Tartu Ülikool Majandusteadus
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