| About that middle class..... on 11:08 - Sep 13 with 1552 views | CoachRob |
| About that middle class..... on 11:02 - Sep 13 by powinswitch |
In a very well known Regimental gymnasium about 6 years ago read a simple ‘you can’t make the weak strong, by making the strong weaker’. |
Is that a take on Nietzsche? Whatever happened to his ideas? |  | |  |
| About that middle class..... on 11:13 - Sep 13 with 1544 views | Gromheort |
| About that middle class..... on 10:51 - Sep 13 by CoachRob |
The acknowledgement the debt plays a role in the economy. Neo-classicals believe banks are intermediaries who push money around the system, they don't create money and money, banks and debt play no role in output.
Carney has come out in support of the Post-Keynesian view on how banks operate and Brown is finally acknowledging that asset bubbles created by change in credit growth is a concern in the economy. Something neither would have admitted 10 years ago.
The Barro-Gordon model used as evidence to support independent central banks is to blame for the charade that central banks have become. |
As I mentioned, I'm a little innocent when it comes to Post-Keynesianism. So is it an endogeneous money argument? Does it come to the notion of continuous intervention of the central bank? Then rejection of the 'we can sit on your hands' macro policy, as arguably adopted prior to the last financial crisis? |  | | |
| About that middle class..... on 11:41 - Sep 13 with 1515 views | CoachRob |
| About that middle class..... on 11:13 - Sep 13 by Gromheort |
As I mentioned, I'm a little innocent when it comes to Post-Keynesianism. So is it an endogeneous money argument? Does it come to the notion of continuous intervention of the central bank? Then rejection of the 'we can sit on your hands' macro policy, as arguably adopted prior to the last financial crisis? |
The central banks of course are not independent as they all meet at BIS to discuss the way forward for a profitable banking sector. Centrals banks are inherently political e.g. QE. We have to acknowledge the political power of the central banks and devise a way to broaden their scope from inflation targets. The BoE has changed for the better with a diversity of disciplines now employed such as scientists to aid complex modelling.
Endogenous money has now been accepted by the BoE and Bundesbank as the correct way banks work. The fallacy of fractional reserve and money multiplier has been proven but is still taught uncritically on A-level and undergrad courses. | | | |
| About that middle class..... on 11:47 - Sep 13 with 1508 views | Gromheort |
| About that middle class..... on 11:41 - Sep 13 by CoachRob |
The central banks of course are not independent as they all meet at BIS to discuss the way forward for a profitable banking sector. Centrals banks are inherently political e.g. QE. We have to acknowledge the political power of the central banks and devise a way to broaden their scope from inflation targets. The BoE has changed for the better with a diversity of disciplines now employed such as scientists to aid complex modelling.
Endogenous money has now been accepted by the BoE and Bundesbank as the correct way banks work. The fallacy of fractional reserve and money multiplier has been proven but is still taught uncritically on A-level and undergrad courses. |
Your mention of scientists to aid complex modelling is an interesting one. I've had little experience with macro modelling (just VAR stuff where I pretend I'm predicting). Is this linked at all to 'complexity economics' and switching to something akin to an adaptive ecosystem? | | | |
| About that middle class..... on 12:05 - Sep 13 with 1493 views | CoachRob |
| About that middle class..... on 11:47 - Sep 13 by Gromheort |
Your mention of scientists to aid complex modelling is an interesting one. I've had little experience with macro modelling (just VAR stuff where I pretend I'm predicting). Is this linked at all to 'complexity economics' and switching to something akin to an adaptive ecosystem? |
Spot on. So Post-Keynesians and Austrians believe in non-equilibrium based economics and where we differ is that Austrians don't believe in modelling but Post-Keynesians believe in complex modelling based on differential equations (so looking at rate of change of a given variable). DSGE used by neo-classicals is great apparently when the economy is in "equilibrium" but can't predict crisis (exogenous shocks) or work during a crisis - so no flaws there then!
The one area we are struggling in is how to come away from the closed system of circular flow and move to a system that includes the role of the environment. | | | |
| About that middle class..... on 12:55 - Sep 13 with 1463 views | Gromheort |
| About that middle class..... on 12:05 - Sep 13 by CoachRob |
Spot on. So Post-Keynesians and Austrians believe in non-equilibrium based economics and where we differ is that Austrians don't believe in modelling but Post-Keynesians believe in complex modelling based on differential equations (so looking at rate of change of a given variable). DSGE used by neo-classicals is great apparently when the economy is in "equilibrium" but can't predict crisis (exogenous shocks) or work during a crisis - so no flaws there then!
The one area we are struggling in is how to come away from the closed system of circular flow and move to a system that includes the role of the environment. |
Thanks for the detail. Certainly interesting stuff. I lost heart with macro after guff like the Lucas Critique. It then didn't seem to matter as my job only leads to micro level murmurs. I'd be grateful if you kept me informed of further developments!! | | | |
| About that middle class..... on 13:07 - Sep 13 with 1447 views | lowhouseblue |
| About that middle class..... on 12:05 - Sep 13 by CoachRob |
Spot on. So Post-Keynesians and Austrians believe in non-equilibrium based economics and where we differ is that Austrians don't believe in modelling but Post-Keynesians believe in complex modelling based on differential equations (so looking at rate of change of a given variable). DSGE used by neo-classicals is great apparently when the economy is in "equilibrium" but can't predict crisis (exogenous shocks) or work during a crisis - so no flaws there then!
The one area we are struggling in is how to come away from the closed system of circular flow and move to a system that includes the role of the environment. |
what do you think of minsky? |  |
| And so as the loose-bowelled pigeon of time swoops low over the unsuspecting tourist of destiny, and the flatulent skunk of fate wanders into the air-conditioning system of eternity, I notice it's the end of the show |
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| About that middle class..... on 13:46 - Sep 13 with 1413 views | Bluefish |
Think you might need to explain it a bit more for me. Are you saying people that earn a reasonable living are bad because they might borrow money? I have no loans and not a single penny owing on a credit card. Where does this leave me in your analysis? It seems you are judging middle ground people as all being borrowers? Still don't get your points |  |
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| About that middle class..... on 14:03 - Sep 13 with 1405 views | Lord_Lucan |
I haven't read the article but there are two major problems for retailers, one is obviously Amazon and the other is the state of sterling. exchange rates are key and with the dollar rate at around 1.29 we are all screwed.
Amazon is a massive issue and they pay sod all tax. Government needs to grow a pair of balls and sort it out. Another problem is rates. Amazon distribution centres obviously pay rates but not at the same level as High Street rates. Amazon are paying industrial building rates but in effect retailing from there, also Amazon sellers working and shipping from home are paying no rates and probably no VAT or tax.
People are using the likes of John Lewis and Debenhams as show rooms, they see what they like, maybe even try something on and then go home and order it from Amazon.
The only answer to get more money into the exchequer and at the same time save the high street is to create a click tax or increase online purchases VAT to 25% [Post edited 13 Sep 2018 14:06]
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| About that middle class..... on 18:16 - Sep 13 with 1344 views | BanksterDebtSlave |
| About that middle class..... on 13:46 - Sep 13 by Bluefish |
Think you might need to explain it a bit more for me. Are you saying people that earn a reasonable living are bad because they might borrow money? I have no loans and not a single penny owing on a credit card. Where does this leave me in your analysis? It seems you are judging middle ground people as all being borrowers? Still don't get your points |
Try to move away from the notion of anybody being judged and think more in terms of what it says about the 'wizard of Oz' economy. |  |
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| About that middle class..... on 18:51 - Sep 13 with 1334 views | BlueBadger |
| About that middle class..... on 10:59 - Sep 13 by BanksterDebtSlave |
.....less disposable income= declining profit for shop selling over priced crap, does that help. Sorry if I upset you by alluding to your propensity for virtue signalling yesterday if your comment is a 'hurt' response to that . |
'Virtue signalling's concept invented by right-wing tosspots who want people to stop being nice to each other. I'd have thought that good socialist like you would know that. |  |
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