Bank of England governor admits central MMT axiom April 24, 2014Posted by larry in economics, MMT, money.
I gave a presentation recently at a Radical Statistics conference where one of my contentions was that money was nothing more than a legally binding promissory note, or as Randall Wray like to refer to it, an IOU, much like it states on US bills themselves. Now, we have Carney, the Candian BoE governor, saying exactly the same thing publicly.
The Bank of England, as reported by David Graeber, finally admits publicly what I contended in my talk at the RadStats conference, that the UK is not finance constrained and that money is just a legally binding promissory note [or as he says, an IOU]. As Graeber notices, this completely contradicts Osborne’s justifications of his austerity program, which it appears he may mention again in his budget statement tomorrow along with further comments about the [nonexistent] recovery. Labour’s problem is that There Is An Alternative [TIAA], MMT, which would completely undercut Osborne’s entire economic program, but they continually fail to utilize it.
Here is the link.
Update: it seemed that Osborne might mention what the BoE governor said about the nature of money in a contemporary economic system, but he didn’t. This is not surprising, as to do so would have seriously undermined his entire economic program. He and Cameron have since then, for what would seem to be obvious reasons, combined to form a double act extolling what they claim is an economic recovery. That there is no such thing, I take here as read.