The Weekend Quiz – August 5-6, 2017 – answers and discussion

Here are the answers with discussion for this Weekend’s Quiz. The information provided should help you work out why you missed a question or three! If you haven’t already done the Quiz from yesterday then have a go at it before you read the answers. I hope this helps you develop an understanding of modern monetary theory (MMT) and its application to macroeconomic thinking. Comments as usual welcome, especially if I have made an error.

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Why haven’t any IMF officials been prosecuted for malpractice in Greece?

I have discussed the work of the IMF Evaluation Office before. The IEO “provides objective and independent evaluation” of the IMF performance and operates “independently of IMF management” and reports to the Executive Board of the organisation. It is an independent as one could imagine in this milieu. I have just finished reading the 474-page Background Papers that the IEO released in 2016 and which formed the basis of its June 2016 Evaluation Report – The IMF and the Crises in Greece, Ireland, and Portugal. It is not a pretty story. It seems that the incompetence driven by the blind adherence to Groupthink that the earlier Reports had highlighted went a step further in the case of Greece into what I would consider to be criminality. The scale of the professional incompetence notwithstanding, the IEO found that IMF officials and economists violated the written and constitutional rules of their own organisation and failed to supply relevant documents for audit. So why are all these economists and officials still walking free, given the scale of the disaster they created?

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The neo-liberal infestation – Australia’s broadband fiasco gets worse

I have written about Australia’s fraught venture into establishing a national broadband network (the so-called NBN) to apparently take us into the next era of communications, although it seems the lifespan of what they eventually will build will be short, in the sense, that it will need massive new investment almost immediately to make it workable. The current conservative (neo-liberal) government came into office not long after the NBN, which was commissioned by the outgoing Labor government, was in its development phase. It immediately altered the design to fibre-to-node (so optic fibre goes to boxes in suburbs and the final route relies on the dysfunctional copper wire), from fibre-to-home to apparently make it quicker to implement and require less government outlay. The changes and the ‘business model’ the government has forced on the NBN Company (the public monopoly constructor and wholesaler) have created such a mess with respect to our network availability and speed that it really serves as an ideal case study for students seeking to understand how the neo-liberal ideology stifles national interest and innovation. The latest dynamics being revealed about this disaster are simply staggering. We have moved so far away from an understanding of public infrastructure as the Government engages in its ideological crusade against innovation and government spending. Amazing really how all of us can be so stupid to tolerate it.

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Reflections on a visit to New Zealand

Last Friday, I gave a public lecture organised by the strategy group Strategy2040 and the full presentation is available on YouTube – Thinking in a Modern Monetary Theory Way (I made it available in yesterday’s blog). After that presentation I was invited to a ‘Roundtable’ meeting (although the layout was rectangular) which comprised about 30 or so people (mostly economists as I gather) being given the opportunity for 90 minutes to question me about the presentation etc – to tear me apart really. There was a call from an former senior central banker in the audience to have Chatham House rules governing the meeting. I declined acceptance of that constraint. Opinions should be owned. But what the meeting taught me was that, despite the GFC and the failure of the mainstream macroeconomics to predict it, deal with it when it arrived and then change its approach in the aftermath, very little has changed within the mainstream narrative. The same myths are being propagated and academic and senior policy economists seem blithe to reality.

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Travelling all day today but here is something to watch and listen to

I am travelling most of today and thus my usual blog will resume tomorrow. Yesterday, an interview that I did for RadioNZ (the public broadcaster) on Friday was aired on their popular Sunday Show. You can access the interview overleaf. You can also access the video of my presentation on Friday (July 28, 2017) at the University of Victoria, Wellington. That should keep you all busy.

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The Weekend Quiz – July 29-30, 2017 – answers and discussion

Here are the answers with discussion for this Weekend’s Quiz. The information provided should help you work out why you missed a question or three! If you haven’t already done the Quiz from yesterday then have a go at it before you read the answers. I hope this helps you develop an understanding of modern monetary theory (MMT) and its application to macroeconomic thinking. Comments as usual welcome, especially if I have made an error.

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Today in Wellington – Live Stream at 12:30 NZ time

I am Wellington (NZ) today and in addition to various meetings and other engagements I am giving a presentation which I am calling “Thinking in a Modern Monetary Theory Way”. I hope to post audio or video with slides etc on Monday when I have some more time to process the information. But you can watch the presentation live (I am told) and the details are available by Clicking “Read the rest of this entry” …

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Travelling to the land of the long white cloud today

I am travelling for most of today to New Zealand (Wellington) to honour some engagements promoting a new political movement that is keen to use Modern Monetary Theory (MMT) as a basis for a progressive political agenda in a nation that has been in the throes of a neo-liberal infestation for several decades now. In fact, New Zealand was one of the first to sink into neo-liberal oblivion. I wrote about the devastating consequences of this policy shift in this blog – The comeback of conservative ideology. It was a very sorry tale indeed. The sociopaths took over. You can see a rich portrayal of how the neo-liberals set about wrecking the social fabric of this wonderful nation by watching the documentary film – In a Land of Plenty – which runs for 1 hour and 44 minutes. It is compelling and worth the investment of your time. You will get angry. But maybe getting angry is the first step towards getting active and joining collective movements to do something about this nonsense. Indeed, that is what I am up to over the next few days – helping a new political movement develop narratives to counter the insidious dominance of the neo-liberals. Building a true oppositional Left is the imperative now for all activists.

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