When the Interest Rate on the National Debt Is a Policy Variable (and “Printing Money” Does Not Apply)

Fullwiler, Scott T.

doi:10.1111/pbaf.12249

Cited by 9 publications

(3 citation statements)

References 8 publications

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“…The approach outlined here replaces the very blunt tool of interest rates with a much deeper and more effective toolbox. MMT economists propose maintaining a zero rate of interest for countries with a floating exchange rate (Forstater and Mosler, 2005;Fullwiler, 2020), as high interest rates on government bonds drive wealth inequality and potentially generate inflationary pressure. A zero rate on government bonds and overnight bank lending can be complimented by differentiated interest rates for lending on other assets and loans, in line with credit regulation as outlined above.…”

Section: Credit Regulations: Degrowing Private Financementioning

confidence: 99%

How to Pay for Saving the World: Modern Monetary Theory for a Degrowth Transition

2022

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Section: Credit Regulations: Degrowing Private Financementioning

confidence: 99%

How to Pay for Saving the World: Modern Monetary Theory for a Degrowth Transition

2022

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“…However, this approach sustains that the government has no influence on the interest rate on debt, and that historically the interest rate of debt has been higher than the growth rate. On the contrary,Fullwiler (2020) shows that the interest on debt is theoretically a policy variable, and that for the case of the USA has been historically below the growth rate of the economy.…”

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confidence: 99%

Public debt in Colombia: a post-Keynesian and institutionalist analysis

Naranjo

2023

Cuad. Econ.

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This article studies the institutional framework and the empirical evolution of Colombian public debt for the period 2001-2020 within a post-Keynesian approach. The objective is to render clear the potential that debt emission has as a macroeconomic policy instrument, and consequently to propose various policy routes for Colombian government. These policy routes suggest a different path than the one indicated by the orthodox economic tradition that has ruled the policy practiced in Colombia. In particular, taking into account the institutional and external limitations of fiscal policy, the revival of the ‘Development Bank’ inside the Central Bank of Colombia, and insist in and the need of cooperation and coordination of macroeconomic policies with the countries of the region are insisted.

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“…See the contributions ofLavoie (2013), Fullwiler (2020, and Tymoigne (2020).INTERNATIONAL JOURNAL OF POLITICAL ECONOMY…”

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confidence: 99%

A Gathering of Storms: The Impact of COVID-19 Pandemic on the Balance of Payments of Emerging Markets and Developing Economies (EMDEs)

Bortz

Michelena

Toledo

2020

International Journal of Political Economy

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The aim of this article is to track the impact of the COVID-19 pandemic crisis on EMDEs focusing on the performance of their Balance of Payments (BOPs). EMDEs are facing simultaneous hits in their BOPs as they try to cope with the domestic impact of the COVID-19 pandemic. Those impacts call for a rethinking of some aspects of the Keynesian Approach to BOPs while strengthening the view of international financial markets as hierarchical and volatile institutions. The external impacts can be summarized in four channels: (i) The unprecedented capital flight which has led to depreciation, scarcity of hard currency, debt problems and rising spreads in domestic currency; (ii) the fall in commodity prices, a major component of the export basket in most EMDEs; (iii) the contraction in global aggregate demand and supply, which together with lower commodity prices lead to reduced export earnings; and (iv) the decrease in remittances, a major supply of hard currency in several EMDEs and Low-Income Countries (LICs). The concomitant impact of these "storms" has limited the capabilities and efficiency of governments to adopt fiscal and monetary stimulus packages and to respond to the sanitary requirements. Government reactions are also clogged by the large weight of the informal sector in EMDEs.

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When the Interest Rate on the National Debt Is a Policy Variable (and “Printing Money” Does Not Apply)

Cited by 9 publications

References 8 publications

How to Pay for Saving the World: Modern Monetary Theory for a Degrowth Transition

How to Pay for Saving the World: Modern Monetary Theory for a Degrowth Transition

Public debt in Colombia: a post-Keynesian and institutionalist analysis

A Gathering of Storms: The Impact of COVID-19 Pandemic on the Balance of Payments of Emerging Markets and Developing Economies (EMDEs)

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