PakistanThis is the 6th and final part of a sequence of posts on policy implications of Modern Monetary Theory for Pakistan. The first five posts are 1-MMT For Pakistan,2-Two Sources of Monetary Injections,3-Three Way Partnership,4-Job Guarantee Programs, and 5-Sectorally Balanced Monetary Expansion. Once we realize that money is not a constraint, the possibilities for utilizing … Continue reading »
This is the fifth in a series of posts which expand upon a talk delivered on Modern Monetary Theory at the State Bank of Pakistan on 7th Jan 2020. The previous post (4-Job Guarantee Program) explained some aspects relevant to Pakistan. This portion deals with how we can avoid inflationary consequences of the money creation … Continue reading »
Continues from previous post on 3-Three Way Partnership. While the three-way partnership (discussed in previous post) is an unconventional program, designed for the unique circumstances currently prevailing in Pakistan, the JOB GUARANTEE PROGRAM is one of the central recommendations which emerges out of macroeconomic ideas generated by Modern Monetary Theory. The basic idea is that … Continue reading »
Previous posts in this sequence about “Policy Implications of MMT for Pakistan” are 1-MMT For Pakistan and 2-Two Sources of Monetary Injections. This post notes that standard approaches to MMT, where the government creates money to finance public projects, are not feasible in current Pakistani context. Instead, a three-way partnership is required to allow private sector creation … Continue reading »
As a brief recap of the previous post (1-MMT For Pakistan) , Part 1 of a talk on Policy Implications of MMT for Pakistan, we note the key accounting identity that Business Profits + Household Savings = Government Injections (Deficits) + Foreign Injections. If firms are motivated by profits, and households seek to save, the … Continue reading »
{bit.ly/MMT1Pak} Introductory Remarks: This post is 1st part of my second talk at SBP; (see MMT at SBP for first talk) . I taught a two semester course on this topic, and very little of the depth and complexity can be covered in the allotted time of half an hour. Accordingly, in this talk I … Continue reading »