Post by 4aapl on Sept 7, 2021 14:43:02 GMT -8
I meant to write a little report on this book sooner. For anyone of the mindset that the deficit has to be paid back in full sometime, or that every bit of spending needs to be matched with tax income, this step into Modern Monetary Theory is a very interesting read. I'd suggest it for all, even though it got slightly repetitive.
Here's what I said here: aaplfinance.proboards.com/post/124809
FWIW, for a chaotic book that helps show where Monetary Theory came from, Lord of Finance, The Bankers Who Broke The World, does an ok job. IMO there were lots of stuff in there that didn't matter much, and it jumped around, but in the end it did show some of the chaos and "learn as you go" actions that happened.
(EDIT: This was in the timeframe of moving from the gold standard, and where the US became the world currency)
Here's what I said here: aaplfinance.proboards.com/post/124809
"The Deficit Myth" was an interesting read that pointed out the power that most large countries have that manage their own currency. Basically, it talks about Modern Monetary Theory, and how Federal deficits really aren't an issue, as long as inflation is kept in check. They can print money and control interest rates, but it really all comes back to inflation, where they want a little bit of inflation to keep everything working together.
But smaller countries that don't use their own currency don't have that power, whether that's the likes of El Salvador using the dollar (and now bitcoin too), or a country like Greece sharing the Euro. Countries can still get into trouble if they issue their own currency, like Mexico (in the 80's?) and more recently Argentina (I believe) when inflation went out of control. But if kept in check, especially with overall population and economic growth, it's a strong power that can be utilized.
Not the most exciting book and it started to repeat itself, but an interesting concept with a different view than most have (Fisher talked about how moderate deficits didn't matter, but didn't go to this depth), and more of a page turner than my current read of "Capital Allocators" (I'm hoping the second half is more interesting to me).
But smaller countries that don't use their own currency don't have that power, whether that's the likes of El Salvador using the dollar (and now bitcoin too), or a country like Greece sharing the Euro. Countries can still get into trouble if they issue their own currency, like Mexico (in the 80's?) and more recently Argentina (I believe) when inflation went out of control. But if kept in check, especially with overall population and economic growth, it's a strong power that can be utilized.
Not the most exciting book and it started to repeat itself, but an interesting concept with a different view than most have (Fisher talked about how moderate deficits didn't matter, but didn't go to this depth), and more of a page turner than my current read of "Capital Allocators" (I'm hoping the second half is more interesting to me).
FWIW, for a chaotic book that helps show where Monetary Theory came from, Lord of Finance, The Bankers Who Broke The World, does an ok job. IMO there were lots of stuff in there that didn't matter much, and it jumped around, but in the end it did show some of the chaos and "learn as you go" actions that happened.
(EDIT: This was in the timeframe of moving from the gold standard, and where the US became the world currency)