Understanding Modern Money: The Key to Full Employment and Price StabilityIn this innovative and very practical book, L. Randall Wray argues that full employment and price stability are not the incompatible goals that current economic theory and policy assume. Indeed, he advances a policy that would generate true, full employment while simultaneously ensuring an even greater degree of price stability than has been achieved in the 1990s. Wray's clearly written argument incorporates incisive historical analysis, modern monetary theory, and an examination of policy alternatives that rises above the doctrinal debates among monetarists, supply-siders and Keynesians over natural or non-inflationary rates of unemployment. Understanding Modern Money proclaims that a labor buffer stock program would guarantee full employment and increase labor productivity and economic growth, while reducing inflationary pressures. Wray's analysis shows that, contrary to popular belief, the dangers of a government budget deficit are largely imaginary. He outlines a program in which the government acts as employer of last resort, thereby providing employment and training to the otherwise unemployed, and stabilizing the wage scale which acts as a brake on inflation. This permits greater price stability without requiring conventional methods such as wage and price controls or countercyclical monetary policy. This ground-breaking book offers important new ways of thinking for policymakers, students, and general readers interested in economics, employment policies, and monetary theory. |
From inside the book
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... zero ( at least , in the case of the Fed funds rate ) ; rather than deficit spending raising interest rates , it actually causes overnight rates to fall to zero when it is at a level that generates excess reserves . Government spending ...
... zero settlement balance by the end of each business day . The Bank of Canada then attempts to set the net supply of settlement balances at zero . At any overnight market rate that is more than 50 basis points below the bank rate , the ...
... zero . A bank deposit can be thought of as a long position in fiat money , while the bank's borrowers have short positions , betting that they will be able to obtain money for delivery later . " 19 A reduction of government spending can ...
Contents
Introduction | 1 |
The Chartalist Approach | 18 |
An Introduction to a History of Money | 39 |
Copyright | |
7 other sections not shown
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Understanding Modern Money: The Key to Full Employment and Price Stability L. Randall Wray No preview available - 2006 |