kelton2013What is Modern Monetary Theory?

kelton2013 What is Modern Monetary Theory?
2013/02/26
https://youtu.be/kHjUguFzkUs



文字起こし dr seventy calvin is with us economist and chair of the part of economics at the university of missouri and kansas city and editor in chief of bead new economic perspectives blog new economic perspectives dot or dr kalam welcome to our program it's great to join him it is great to have you with us a watched enough video clips of you that i feel like i know you uh... it is by a personal could you give us a a snapshot your summary of what modern monetary theory means well i guess the easiest way to say it is to say that it's in the way they're doing economics that brings us into the twenty-first century on that recognizes the simple fact that were not at all standard anymore and so much at the way that we keep g economics to the end i'm not just in the u_s_ but all around the world is based on these outmoded ideas that are no longer relevant in the modern era and so what modern money theory does is really recognize that the system works very differently today by virtue of the fact that the monetary system changed in a really important way in nineteen seventy one and that is uh... the year in which we broke from gold and so we have this monetary system today that is based ana purity say fiat money uh... and it just doesn't work the way it used to work under the old system but we act like we're still hamstrung by the same sort of constraints that were present to the old system narco arm and we are taking advantage of a whole range of policy options that weekend adopted now that weren't really available to us before okay so under the old system when we were before nixon close the door window in seventy one were basically constrained in the number of dollars that we could produced by the amount of gold we had to set an accurate statement is point one yes more unless i mean you had to be very hysterical women running your fiscal and monetary policy because when we're pledging to do was to convert the currency into gold which is of course eliminating finite resource and so you need very careful about how many dollars you actually creating had in circulation because it you had too many people all at the same time deciding i wanna hold the dollar and when it convert into gold even running to real problems in terms of keeping that might exist dot how do you respond as somebody who says in nineteen seventy one uh... if you paid fifteen or twenty thousand dollars for a house that house right now which sell for two or three hundred thousand dollars impact in two thousand seven primaries so for four hundred thousand dollars uh... isn't that evidence that we should the state in the gold standard i think that's basically the kind of ron paul response right so well i would say to them you know we had eight depressions while we're on both standard and we had zero since we've gone off the gold standard so because there is one of these monetary systems that works until you need it most and then it doesn't work which is why every country in the world abandons cold uh... when you have an economic crisis like the one that we had in in two thousand seven if we had been on a gold standard then we would have been forced out the gold standard i have certainly seen the value of our currency clubs uh... will now no we sure happen but this is something that lots of people were uh... word bringing the alarm bells about writing when the fed began intervening in these unprecedented ways with quantitative easing and so forth a lot of the gold bugs started running around and saying this is the end of the world the dollars going to become worthless it's gonna collapse we're gonna end up like by march ernie or zimbabwe the dollar will be worker paper it's printed on and so forth and of course matrimony spokesman really really wrong about things although the price of gold is has gone from you know say wild in the just fifteen years ago the selling for around two hundred and thirty dollars an ounce and sixteen hundred dollars an ounce now on is that an indication of a change in the price of that particular commodity or in the value of the dollar well it's certainly an indication of it change in the price of a commodity because that's the that's why the price of gold is going out you've got a lot of people we would have this belief you know that big currency is going to become worthless and their fears and anxiety i drive them to purchase commodities like gold and so it drives up the price of gold and we're seeing now and you know these corrections in in terms of goldman as as market participants begin to understand that the dollars actually not going to collapse well then called the comes on unless appear so in that shot so as a fiat currency our dollars no longer backed by gold it is backed by the wealth and full faith and credit of the united states government eleven church or in in the dollar definitely has about you i mean we all are willing to working provide things in order to get the currency as citizens uh... it is intrinsically worthless in the sense that uh... deathbed currency itself the the bills and notes and so forth don't have intrinsic value but they have them nonetheless in the reason that we're all willing to work in providing resources in order to get peace is essentially because the dollar is a tax credit so way young we can get into that night minister but at that just to too to put in a on the cost of the story yet of the but oh my god some throughout the goals there really is falling apart how do you read but that in in the face of you know that in nineteen seventy one a good middle-class income was twelve thousand dollars a year in today that's way below the poverty level in nineteen seventy one you can buy a decent house for thirty thousand dollars specter very nice house and now that's you know for five hundred thousand for the exact same house that in nineteen seventy one gold was thirty some odd dollars now stout sixteen hundred pick your commodity gasoline in seventy one was thirty cents a gallon now it's almost four dollars um... e are there commodities that have not gone up in value that would show that what we're looking at is commodity inflation rather than dollar depreciation weirded out uation or is dollar devaluation just a natural thing that would have happened with a without power going from a cold soon to a fiat currency the dollar has gone up in value went down in value over time against a range of different currencies one week it's a one year it's down another month is back up another week and stamp so the dollar fluctuates against moral currencies and and a whole range of uh... goods and services have become much cheaper quality has improved a number of things that we could look at a site for just the price of gold outlook and a lot of things have happened since nineteen seventy one that have led to declining standards of living is for americans uh... you know since nineteen seventy three the real wages of the average american yet at worker in this country have been stagnant and more recently have been declining and so you know you've got that the demise of unions and you've got the fact that uh... corporate profits have been increasing productivity has gone opera over time and real wages have stagnated and so americans have turned more and more to get to finance their standard of living over time in and they're just a whole range of things then taken place the financial is asian of the economy and so forth that uh... contribute to the declining worker standards of living over time so through so we should be looking at standard of living rather than what a dollar will buy i'm i'm still doubt on you know i'm i'm on your side and still much during an argument y_a_ the dollar is not appreciating well why if it is it has nothing to do with gold standard depreciating in terms of black depreciating against past and good so inflation is next ordinarily modest right now if it can even hit it's very modest to two and a half percent inflation target and so you know i i i don't see did devaluation of the u_s_ dollar that so many people sort of wring their hands about i mean we we've actually had for now very long period time going all the way back to the to the clinton area where we had rising productivity we had to claiming unemployment rates we have one on the surface appear will really help the economy unhappy inflation is extraordinarily modest even and then fifty a very quickly to just just a few sites will be back after stephanie calvin is with us in the commerce and each of the department economics minister concerning kansas city editor in chief applaud new economic perspectives the economic perspectives 英語