The Sovereign Nation State

Political vs Cosmopolitical Economy

by Serban V.C. Enache

 

The Globalist View on Statehood

Globalist premise. Most products have developed a complex geography – with parts made in different countries and then assembled somewhere else (goods of trans-national origin). Markets when left alone will allocate resources optimally, thus leading to efficiency and low prices. This, of course, requires the free movement of capital, commodities, and labor. All barriers – like capital controls, trade unions, welfare programs, minimum wage laws, nationalized services etc – will distort prices and lead to malinvestment (waste). Continue reading “The Sovereign Nation State”

Peru, Sectoral Balances and Capacity Utilization

by Serban V.C. Enache

Between 2008 and 2017, the Government of Peru ran fiscal surpluses in the years 2008, 2011, 2012, and 2013 – thus helping to erode domestic private sector equity. In contrast Continue reading “Peru, Sectoral Balances and Capacity Utilization”

Steve Keen on the MMT Trade Mantra: imports are benefits, exports are costs

Theory, Practice, Ethics, and Accounting

by Serban V.C. Enache

In a post on his Patreon, Steve Keen explains why he doesn’t agree with the ‘exports are costs, imports are benefits’ point of view, expressed by many adepts of Modern Monetary Theory. I will summarize the two views below and then offer my own two cents on the matter. Continue reading “Steve Keen on the MMT Trade Mantra: imports are benefits, exports are costs”

Thomas Edison and Henry Ford explain Modern Monetary Theory in 1921

Edison and Ford were Deficit Owls

by Serban V.C. Enache

In December 1921, Henry Ford and Thomas Edison visited the Muscle Shoals nitrate and water power projects near Florence, Alabama. Thomas Edison gave an interview with the The New York Times, “Ford Sees Wealth In Muscle Shoals.” With fair use, and in the interest of posterity and public purpose, I reproduce Edison’s views on finance and the economy – which are 100 percent consistent with Modern Monetary Theory. Continue reading “Thomas Edison and Henry Ford explain Modern Monetary Theory in 1921”