Archive for January 2020

6-Potentials and Possibilities

Once we realize that money is not a constraint, the possibilities for utilizing idle resources to increase production are endless. There are a large number of Self-Financing Mega-Projects which we could create using the vast pools of idle unskilled labor at our disposal. Remember that Dubai was built by our laborers – surely we can … Continue reading »

Posted January 16, 2020 by Asad Zaman in Blogs

5-Sectorally Balanced Monetary Expansion

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 »

Posted January 15, 2020 by Asad Zaman in Blogs

4-Job Guarantee Programs

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 »

Posted January 14, 2020 by Asad Zaman in Blogs

3-Three Way Partnership

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 »

Posted January 13, 2020 by Asad Zaman in Blogs

2-Two Sources of Monetary Injections

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 »

Posted January 12, 2020 by Asad Zaman in Blogs

1-MMT For Pakistan

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 cut … Continue reading »

Posted January 11, 2020 by Asad Zaman in Blogs