I recently did an interview for Euro Truffa on six topics related to MMT. The website is here. They are transcribing my interview to Italian (I think that only two are up so far) and putting up the videos. They have also posted all of the videos to YouTube.
As you can tell, I did not realize they were recording the video—I might have tried to sit still if I had known. Also, the coffee had not quite kicked in so I was not entirely awake. Here are the links with just a brief indication of the topic for each.
The first two videos have already been embedded here. (1) The first one addresses all the (silly) (non)-controversy about “consolidating” the Government’s central bank and treasury for the purposes of analysis of fiscal and monetary policy operations. I provide three responses to the critics. (2) The second video tackles the belief that the Euroland crisis is due to current account “imbalances.” As I explain, the real problem is the abandonment of sovereign currency. No one describes the USA financial crisis as a problem of current account imbalances between, say, Alabama and New York. Why? We unified our currency—the dollar—but under Uncle Sam in Washington. The EMU only partially unified, without a central fiscal authority that issues the euro.
(3) In this one, I argue that a floating currency provides more domestic policy space. A country that floats does not need to accumulate reserves of foreign currency. Still, I do not argue that a floating exchange rate is always and everywhere the best strategy.
(4) This one addresses the Job Guarantee (or ELR) and questions about inflation and labor discipline. I argue that the JG provides a job to anyone who wants to work, but without sparking inflation or eliminating discipline. Note that Minsky, like Heinz, argues there are 57 varieties (I think I said 52—again, too early in the morning for me to be doing interviews) of capitalism and pickles.
(5) This segment continues discussion of the JG, arguing that it is morally reprehensible to keep people unemployed, poor, and hungry on the argument that this is necessary to avoid a trade deficit. I do not agree with Tom Palley, who objects to the JG on the argument that “the poor will want meals.” Give them jobs, let them eat. If you do not like trade deficits, then reduce imports of luxury goods bought by the wealthy.
(6) How to save the EMU? Some suggest a unified central bank system—like the Fed. I argue that the problem is fiscal policy, not monetary policy.
Here are the original questions, in English and Italian: continue reading…