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Cullen Roche  

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  • Yes, Government Deficits Equal Private Surpluses (Basically) [View article]
    I closed out the foreign sector just to show how the math works. I wasn't trying to create a real world example. Just like my one house, one bank example doesn't show a real world example.

    I am oversimplifying things to get a complex point across.

    Sorry if some of you find that unhelpful! That was not my intent.
    Aug 12, 2013. 04:25 PM | 1 Like Like |Link to Comment
  • Is Abenomics Working? [View article]
    I am not an MMT advocate. I've actually written lengthy critiques of MMT. See here:

    http://bit.ly/X0Eglg

    We started MR because of these disagreements.

    http://bit.ly/ttAnSh

    Hope that helps.
    Apr 30, 2013. 10:08 PM | Likes Like |Link to Comment
  • The Trillion Dollar Coin Idea: Beyond Stupid [View article]
    James,

    Great article. I really enjoy your work. So thanks.

    Just a few clarifications.

    1) I actually don't think the coin idea would ever get implemented. I agree with James Hamilton that there are "better ways" to solve this issue. The purpose of my articles on the coin have been to highlight the stupidity of the debt ceiling. As I've described, the existence of this "constraint" is akin to eating a cheese pizza (preferably with pepperoni and sausage), tying your intestine in a knot and then threatening your stomach not to digest the food. The debt ceiling is similar in that we only get to the ceiling because of things Congress has ALREADY voted on. It's just silly. And I keep saying that silly problems call for silly policies (which this whole thing is - silly).

    2) I am not an MMTer. I think MMT is superior to most of neoclassical econ, but we started MR specifically because we disagree with many of the main MMT positions. See this article if you're interested. http://bit.ly/X0Eglg

    Thanks again.

    Cullen
    Dec 10, 2012. 10:38 AM | 5 Likes Like |Link to Comment
  • Gold Is Not An 'Investment' [View article]
    Hi guys,

    I would recommend starting with the following links. Some of the content is quite dense while other parts are more basic.

    http://bit.ly/SG0vJP

    Also, I don't comment here often. Not because I don't want to, but because I answer a lot of questions about MR at my site Pragcap. So I just don't have the time to monitor all the places where my content gets syndicated. So if you ever have questions you can always email me or use the "ask cullen" section at pragcap.

    http://bit.ly/QzRtlD

    Hope that helps.

    Cullen
    Nov 11, 2012. 08:39 PM | Likes Like |Link to Comment
  • Gold Is Not An 'Investment' [View article]
    I learned MMT from its founders and always had slight problems with it. But its explanation of the monetary system was far superior to most of neoclassical economics. Many of us who used much of their work had issues with some of the policy ideas MMT embedded in their work and some of the basis for these ideas. Last year there was a very heated debate about the MMT Job Guarantee and it sparked a controversy regarding MMT's view of the govt as a the "monopoly supplier" of currency. It became clear that the difference in our views of the world were far different than previously believed. So, 5 of us officially started a post-MMT school called Monetary Realism.

    There are many differences, but I'd say the largest difference is that MMT views the govt as the center of the monetary system. So all money essentially comes from the govt or is a "creature of the state". In fact, MMT explicitly states that the purpose of the monetary system is to move resources from private to public domain.

    MR views the private sector as the center of the monetary universe and says that the purpose of the monetary system is primarily to serve private purpose. So we start with how money is created by banks and say that the govt just supports the banking system. In essence, the govt has privatized the creation of money. So MR doesn't view money as a "creature of the state". This is a night and day difference from the State Theory of money and the foundation of MMT's views.

    There's a lot more at the link I provided....Hope that helps.
    Nov 11, 2012. 06:49 PM | 1 Like Like |Link to Comment
  • Gold Is Not An 'Investment' [View article]
    I am not an MMT proponent. We created Monetary Realism because we felt that MMT required a post-MMT school due to deficiencies in explaining our actual monetary operations. MMT creates a state centric view of the world that MR says is incorrect. MR describes a market based system. See my expansive criticism of MMT.

    http://bit.ly/X0Eglg
    Nov 11, 2012. 02:42 PM | Likes Like |Link to Comment
  • The Fiscal Cliff And Market Uncertainty [View article]
    I actually don't utilize the MMT views. MR is quite different from MMT. MMT is a state centric view of the monetary system. MR is a market based view of the monetary system. See here.

    http://bit.ly/X0Eglg
    Nov 9, 2012. 06:46 PM | 1 Like Like |Link to Comment
  • Gold Is Not An 'Investment' [View article]
    Technically, I wasn't at the beach. I was on a cliff overlooking the beach. So your question should be: "what kind of douche wears a suit to a cliff overlooking the beach". To that, I do not have a great answer. :-) Sorry.
    Nov 9, 2012. 06:44 PM | 27 Likes Like |Link to Comment
  • U.S. Recession Odds: 100%? [View article]
    Thanks Professor. I added a clarification on my website.
    Nov 9, 2012. 01:10 AM | 2 Likes Like |Link to Comment
  • Lessons From 5 Years Of Economic Crisis [View article]
    Again, I rejected the state theory. It's part of why we created MR. MMT is government centric. MR focuses primarily on the private sector.

    http://bit.ly/X0Eglg
    Oct 12, 2012. 10:38 AM | 1 Like Like |Link to Comment
  • Lessons From 5 Years Of Economic Crisis [View article]
    I don't use the MMT framework. We created Monetary Realism because of our disputes with MMT's views on the state theory and government centric approach to understanding the system. I wrote a very extensive critique of MMT. You might be interested in it:

    http://bit.ly/X0Eglg
    Oct 12, 2012. 10:36 AM | 1 Like Like |Link to Comment
  • MMT, The Euro And The Greatest Prediction Of The Last 20 Years? [View article]
    No need to overreact and start claiming my work is "hurting the world".

    MMT deserves credit for the Euro crisis. I think my comment came out incorrectly. I intended to show that Godley was not an MMTer so it was not accurate of me to say MMT predicted the Euro crisis and then use Godley as a source. The other MMT predictions are excellent and I particularly think Stephanie's quote is prescient. Sorry for the confusion.
    Jul 9, 2012. 12:03 PM | Likes Like |Link to Comment
  • MMT, The Euro And The Greatest Prediction Of The Last 20 Years? [View article]
    ***I should probably add that Godley was not an MMTer, but a post-Keynesian. He should rightly be credited with the prediction. It's not entirely accurate of me to credit the MMT school here since Godley made the prediction long before they did and their work was highly influenced by Godley's understanding of the sectoral balances in the Euro area.***
    Jul 7, 2012. 10:44 PM | Likes Like |Link to Comment
  • Bernanke Does Not Understand The Depth Of His Powers [View article]
    Not surprising that I disagree with someone on MMT since I started MMR because of our many disagreements. :-)
    Apr 19, 2012. 11:44 AM | Likes Like |Link to Comment
  • Bernanke Does Not Understand The Depth Of His Powers [View article]
    Correct Charlie. There's nothing there I disagree with. Fed policy always tries to control inflation up or down. That's one of their two mandates. So yes, Fed policy always has consequences.

    The issue you speak of (currency collapse) is essentially a hyperinflation scenario. I've long predicted that hyperinflation would not result from the Fed's policies and thus far been right. Perhaps see my primer section on hyperinflation to better understand where I am coming from. Some of my views are pretty unorthodox here...

    http://bit.ly/I7la31

    Thanks for the good comment.

    Cullen
    Apr 19, 2012. 11:41 AM | 1 Like Like |Link to Comment
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