In a week that included political headlines, the start of the corporate earnings season, a new stimulus-plan proposal, and some disappointing economic data, equities declined modestly, reversing some of the year-to-date gains. While stocks continue to hover near all-time highs even after last week’s pullback, fixed income and Treasury yields, in our view, have been stealing the spotlight these first two weeks of the year. Benchmark 10-year Treasury yields started the year below 1%, the lowest level to start a calendar year in history, but have since risen steadily, reaching the highest level since March before retracing some on Friday1. Below we provide our take on what the potential for moderately higher yields means for investors. On one episode of Superstructure, host Natalie Smith audibly hit a bong before asking, “What is value? ” (She maintains this was a bit, but she did actually hit that bong. ) The discussions can be difficult to follow for listeners who haven’t spent time in a graduate humanities classroom or graduate students’ parties. But as much purchase as MMT has found in this year’s fiscal policy debates, the attempts to extend the theory to larger political, social, and cultural questions have barely begun to attract any attention.
The Modern Money Network’s Humanities Division only got noticed outside the ranks of the MMT-converted this fall and not necessarily positively. Money, for Tankus and the Modern Money Network, isn’t just a representation of how much of one thing it takes to buy another thing—it’s the expression of our politically molded collective understanding of what’s truly valuable. For these MMTers, our economic arrangements are shaped by ideas as much as seemingly “objective” material facts. Those arrangements can change much more readily than even others on the left may be ready to acknowledge and by very different means than, say, the long grind of one labor struggle after another. For this reason, some of the Money On The Left/Superstructure hosts joke about “turning Marx on his head, ” reversing Marx’s famous line that his materialist philosophy turned the arch-idealist Hegel on his head. The players in this next wave of MMT enthusiasm include an interdisciplinary group of economists, legal scholars, and humanities Ph. D. s convened by the Modern Money Network project. The Modern Money Network is staking out a more capacious leftist, social, political, and cultural theory centered on money and its governance.
Conditionality is associated with economic theory as well as an enforcement mechanism for repayment. Stemming primarily from the work of Jacques Polak, the theoretical underpinning of conditionality was the “monetary approach to the balance of payments”. The current Managing Director and Chairwoman of the IMF is Bulgarian economist Kristalina Georgieva, who has held the post since October 1, 2019. Gita Gopinath was appointed as Chief Economist of IMF from 1 October 2018. Prior to her appointment at the IMF, Gopinath served as the economic adviser to the Chief Minister of Kerala, India. Dividends may be increased, decreased or eliminated at any time without notice.
This is for informational purposes only and should not be interpreted as specific investment advice. Investors should make investment decisions based on their unique investment objectives and financial situation. While the information is believed to be accurate, it is not guaranteed and is subject to change without notice. The Weekly Market Update is published every Friday, after market close. We believe that in most interest-rate environments there are strong arguments for maintaining an appropriate allocation to fixed income. Bonds provide a steady stream of income and can act as a portfolio stabilizer, smoothing out returns during times of equity volatility.
They are explicitly competing with Marxism’s focus on class struggle and the strictly Marxist-socialist left associated with Jacobin magazine, which rose to prominence with Bernie Sanders’s presidential runs. The network has put together conferences and scholarly volumes under the title Money On The Left, along with an interdisciplinary interview podcast of the same name. The success of Biden’s foreign policy will largely depend on how he handles the China challenge. China’s debt levels have climbed during the coronavirus pandemic, especially in the private sector. Business News Daily was founded in 2010 as a resource for small business owners at all stages of their entrepreneurial journey. Our site is focused exclusively on giving small business advice, tutorials and insider insights. Product and service reviews are conducted independently by our editorial team, but we sometimes make money when you click on links.
Whichever is correct, we can be sure that right now we are in uncharted monetary territory. People started saving too much, Although members wanted to “work, ” few were willing to “hire” anyone.
This is a draft oped that didn’t make it to the Wall Street Journal. I’m thinking about the deflation quandary, and that the Fed may be powerless to stop deflation. Commodity standards are essentially fiscal commitments; that’s the big stick the Fed is missing. Targeting the TIPS spread or equivalent CPI-linked securities could provide the backstop to prevent deflation, and allow the Fed to make the fiscal commitments necessary to stop inflation or deflation.
We could even say that the diminished spending had created unemployment and less production — a recession. There were annual dues and scrip that had to be given to new members. Hours were “paid” to the four people who did the bookkeeping and to the person who ran the group. But rather than bartering their services, they created a money supply.