Wednesday, February 29, 2012

Peter Cooper — Democratized Money and MMT



Read it at heteconomist.com
Democratized Money and MMT
by Peter Cooper

Peter sums up the debate wrt capitalism and democracy in terms of the opportunity that a correct understanding of a non-convertible floating rate monetary system provides.

2 comments:

TomatoBasil said...

This is a bit off topic but why is the value of the dollar counter cyclical while (almost) all other currencies are pro-cyclical to world economic conditions. I think it has something to do with being a reserve currency but I don't understand the flows that cause it to happen. It raises the cost of our exports and lowers the cost of imports at the worst possible times. Like now the dollar is getting weaker and the price of fuel rises and slows recovery more than it would otherwise.

Tom Hickey said...

@ TB

Safe haven. Safe haven status directly related to the USD being the global reserve currency.

Both the safe haven and reserve status of the USD are due to the global economic and political power of the US as world's sole superpower and largest economy.