tag:blogger.com,1999:blog-2277215496195926573.post2943420738875942822..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: In defence of Sovereign Money.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2277215496195926573.post-87363875682571776362018-05-02T00:04:52.433-07:002018-05-02T00:04:52.433-07:00This comment has been removed by a blog administrator.Dr Purva Piushttps://www.blogger.com/profile/05883980841903455890noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-40659311153851874022018-03-31T05:23:17.258-07:002018-03-31T05:23:17.258-07:00I was actually thinking of submitting the above ar...I was actually thinking of submitting the above article to the journal which published Bacchetta's work: the Swiss Journal of Economics and Statistics. I sent them an email asking whether it would be best to submit it as a comment on B's work or as a separate paper / article. I didn't get a reply. <br /><br />Obviously I've been identified as an undesirable in respectable Swiss banking circles - not to touched with a barge pole....:-)Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-11552398298989250642018-03-30T10:05:22.084-07:002018-03-30T10:05:22.084-07:00This was a very lame piece of work by Bacchetta o...This was a very lame piece of work by Bacchetta overall,also well rebuffed by your link to Gomez ,who accuses him of not understanding money creation(he says bank credit is not money for example),nor does he understand what SM actually is;of being a "deliberate liar""with confusion in his mind";he also actually ignores evidence to the contrary from his own arguments;cherry picks dates/stats to make his case look stronger <br /><br />Gomez also scoffs at his idea we should be worried about bank runs,avoiding bank runs should not be an issue in a better/more stable system like SM.<br />As well as the idea that the Swiss currency may face flight if it were to adopt such a proposal.Switzerland is a well esatblished stable democracy, in control of its own currency and external balances.The idea it could descend into economic arnachy for adopting SM is just ridiculous.<br /><br />His idea that the current system is best defies the facts,that low long term rates do more harm than good.All for sluggish growth.<br /><br />In a word the case made by Bacchetta is "laughable"<br />Vincehttps://www.blogger.com/profile/08057936746193286642noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-21852368680853429522018-03-26T01:32:19.989-07:002018-03-26T01:32:19.989-07:00Fair point. My answer for what it's worth, is ...Fair point. My answer for what it's worth, is that like other advocates of Sovereign Money, I'm setting out what I think is the IDEAL system: i.e. one where government DOES DO something really effective about recessions.<br /><br />Also I’d suggest that since WWII, Western governments have kept the AVERAGE level of demand about right: it’s more that they’ve failed to deal in a timely manner with EXCESS and DEFICIENT demand. E.g. they let inflation get out of control in the 1970s and conversely they let excess unemployment last too long in the recent recession.<br /><br />So if I’m right in saying that the AVERAGE level of demand has been about right, then higher interest rates due to Sovereign Money wouldn’t matter if governments continue to “get the average right”. But if they dealt with they gyrations more efficiently, that of course would be even better.<br /><br />Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-4981496832899529452018-03-26T00:21:13.391-07:002018-03-26T00:21:13.391-07:00Very nice post. The only problem I see is that go...Very nice post. The only problem I see is that governments have not been very eager to step up and fill holes in aggregate demand. A ban on bank creation of money probably lowers demand by raising the cost of borrowing. While government could counteract that by creating money and loaning it out, or giving it out, or purchasing goods for itself, it has always had that ability anyways yet we still have recessions due to lack of demand. Jerry Brownnoreply@blogger.com