3 Matching Annotations
  1. Jul 2020
    1. A new paper by Atif Mian of Princeton University, Ludwig Straub of Harvard University and Amir Sufi of the University of Chicago expands on the idea that inequality saps demand from the economy. Just as inequality creates a need for stimulus, they argue, stimulus eventually creates more inequality. This is because it leaves economies more indebted, either because low interest rates encourage households or firms to borrow, or because the government has run deficits. Both public and private indebtedness transfer income to rich investors who own the debt, thereby depressing demand and interest rates still further.
  2. Jun 2020
  3. Apr 2018
    1. sovereign governments create currency through keystrokes

      I'll have to read the other article, but I'll note that a great deal of money creation--even before the advent of cryptocurrencies--has long been in private, not public, hands. Extending credit or making loans creates money. This is basic macroeconomics.