Randall Wray - Why Our Economy Keeps Crashing
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- Опубликовано: 10 мар 2023
- Professor Randall Wray joins us to talk about the Boom and Bust Cycle. Covering topics like the Capital Controversies, Keyne's Marginal Efficiency of Investment, Hyman Minsky's Financial Instability Hypothesis and many more!
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Economic investigator Frank G Melbourne Australia is following this informative content cheers Frank 😊
If, as some predict, AI and similar technologies increase productivity and supply, wouldn't you need a more than expected increase in the money supply to prevent deflation? Deflation may be more of a problem than inflation if we get a large boost in productivity.
Great video ❤
Punctuated Equilibrium, transverse trancendental prime-cofactor frequency density-intensity alignment amplitudes in the Calendar of years.. boom-bust chaos is typical for Earth's Ecology.
Great to see Steve Keen's ideas put to test with another great mind. Thanks for the content and take time to enjoy life, that's what we are fighting for ultamately. 😂
Well, exponential growth is impossible in any physical system... if you do it anyway, you get boom and bust. That's my guess... and now let's watch, I'm curious...
Anarchy of production.
Your basic problem is capitalism.
It's not a problem, it's a feature.
This is how the super rich own everything.
Man this stuff is pretty dense. I took some macro as an undergrad at Binghamton but it wasn’t nearly this technical lol
@2:14:00 "stability is destabilising" yet Minksy wanted to promote stability! Doh! Wray's one-liner is too glib. To reduce the instability in a financial system you remove the sources, which are excessive (pointless) competition, artificial (imposed) austerity, and fixed exchange rates, and controlled currency supply. You let the currency float, and go to full employment, with an employed labour buffer of forever up-skilled workers (ideally, skill training resources withstanding). And crucially: banks get told only *_what they can do_* (narrow banking) run the payments clearing system, and assess credit risk. And 100% bank deposit insurance --- so no one with too much cash on their hands needs to seek a shadow bank (a major source of financial instability). And finally, ZIRP --- so there is no basic income only for people who already have money.
All other sources of _financial_ instability are pretty negligible imho. Economic output (pandemic/asteroid sensitive) and political instability (regime/invasion/coup sensitive) are different topics.
Haven’t watched the whole thing yet my main thing is who is going to agree to this politically without the biggest struggle in American history. This would be a struggle on a level possibly never seen & the US dollar declining do we have enough time to pull this off there would have to be some incredible diplomacy during these times as well as political alignment with this idea . I love it but this is a Hail Mary
Life is Messy. Capitalism is even Messier.
"Let the markets regulate themselves" makes about as much sense as "Let sulfuric acid determine its own shape".
And incomplete-incomprehensible.., branch off ecological circumstances.
Great quote
*Get rid of debt.*
That would mean getting rid of currencies. All currencies are (nominal) debts of the state. But that's fine. a fiat currency issuer can always make all payments on debt due, and always accepts back their currency for payment of taxes (eliminating the state's debt obligations). Maybe you just mean eliminate all *_private debt?_* That could be done, but then there is no chance of private investment using credit, and no big purchases beyond incomes (so no house ownership, unless it is 100% state housing).
The better stabilization is a Job Guarantee labour floor. Full employment + price stability, no one loses their house (unless they want to).
@@Achrononmaster
I meant get rid of all debt and adopt a currency driven by useful taxes the idea of the government borrowing from itself and from the private sector is stupid and dangerous ,debt grows way more faster than the economy it's simple math so eventually the whole economy will collapse.
In a debt economy you'll never have full employment,look at what the Fed is doing,it's literally creating unemployment to save the economy!!!
@@everythinglooksgrey8796
_If a government defaults on its debt denominated by its own currency that means it's run by very stupid people._
@@everythinglooksgrey8796
this is why the idea of a government borrowing its own currency is stupid and dangerous
@@user-ry2qs7xf9k What's stupid is the idea that a monetarily sovereign nation would ever need to borrow in its own currency to begin with, when they, themselves are the only party legally capable of producing it. You are applying gold standard logic to an economy that no longer uses it.
Who do we "owe" when we deficit spend, China? Taxpayers? If they produce dollars, they are counterfeit. ONLY the FED government can produce USD, and we can fulfill any debt in USD, in full, at any time.
You are focusing too much on the currency, which is infinite. What has real value are real resources, which are finite. When you run out of those, your currency is worthless.
Get another guest. Thank you
Watch another channel. Thank you.
There is no such thing as "aggregate demand" in the economy as Randall Wray talks of it.
The concept of an "aggregate demand" as he misuses it is itself rubbish because it contains no account for prices and as demand increases or decreases for any product prices are a relevant factor. Yet Randall Wray ignores this always present fact for goods or services of any kind in the economy. e.g. The demand for tomatoes decreases as prices rise and increases as prices fall so what is the so called "aggregate demand" for anything at any time without considering prices? Answer :- Nobody knows and nobody can determine it because demand, supply and price are the determining and interacting factors in any sale of goods or services.
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If you do a quick google search on the definition of “aggregate demand” you will find that aggregate demand specifies the amount of goods and services that will be purchased at all possible price levels
@@peepeepoopoo3324 Thank you for proving there is no such thing as 'aggregate demand' by your definition. That is because nothing is able to be purchased at all price levels. If you think it exists anywhere then where has it existed ever when some things are not for sale at the lower end of prices and others are incapable of being purchased at the maximum price level because there is always insufficient money available to do so in any real economy. So price has been ignored.
The term "aggregate demand" is therefore nothing that existed or has ever existed. It is a purely abstract term and so no purchase has ever been made that is part of it.
@@Rob-fx2dw lmao dude aggregate demand is a curve. Aggregate demand is a curve on a graph with price level on the y axis and real GDP on the x axis. Just google man hahahaha
@@peepeepoopoo3324 You are confused. A curve is graphic representation of something. It is not an actual thing itself and does not prove the existence of any particular thing.
I can draw a graphic representation of anything I have imagined but it does not mean the thing exists. All it means is I could have already imagined a something that is abstract such as notion which is somethiung that does not exist in reality.
@@Rob-fx2dw What happened to "aggregate demand contains no account for price"? Now aggregate demand is just a graphic representation that's purely imagined? It's not based on any real data? Like real GDP on the x axis? And real price data being estimated on the y axis? Googling is easy btw
This is mostly just an exercise in mental masturbation. You ever heard of a book called "Modern Monetary Mechanics" published by the Chicago Fed in 1961? It was a detailed explination of fractional reserve banking and the money multiplier. It was replete with charts, graphs, formulas, and equasions, going into great detail on how that system worked and it was (and still is) taught to every student who studies economics. It was later proven to be a complete work of fiction, debunked by the Fed itself (3 times), the Bank of England, Standard & Poors and many others. In that regard, just about everything you're going on about in this video, is of the same quality as "Modern Monetary Mechanics". Oh and, your explination of how our monetary system works, is so far out of the relm of reality, it defies debate.
What's your take?
Why not enlighten us?🤔