hey Brett and any of your Berliner readers, this isn't a direct comment exactly, but to let people know that the 3rd European Modern Monetary Theory Conference 2023 in Berlin starts 2mrw. ( Sep 9-11 ) I'm still learning about MMT-ers, but have heard from friends that some of these speakers are very good at explaining the money systems ( but not necessarily good in the politics of building the alternatives ), and would be very curious how you would analyze their conference with the theme: Navigating the Polycrisis: A conference on European Macroeconomics. We might try and write up a small XLterrestrials analysis ( https://xlterrestrials.substack.com/ ), but we won't be able to attend all of it... maybe see you there !
This piece really helps to fill out & cement my existing understanding of payments & the money layers. I appreciate your flair for explanation & use of metaphors—thanks for sharing your knowledge!
I have a semi-related question: How do bank interest profits manifest?—as additional reserves? or does the bank maintain internal "cash accounts" where it stashes its profits?
More cracking work Brett. I love the visualisations they are very helpful.
BTW I loved Cloudmoney. You make this complex domain fascinating to unpick.
I have started paying with cash again as a personal statement. My local kebab shop (I have them on speed dial) are asking for cash payments to avoid the processing fees and I’m happy to oblige.
Currently reading Doughnut Economics which talks about complimentary currencies and references the work of Bernard Lietaer and the creation of Torekes. Are you familiar with this scheme? I’m interested in your views on how scalable currency schemes like this are.
Just one more comment to say thanks Brett. Each piece of yours I read reinforces the others and helps my understanding of the realities of money grow a little more embedded in my everyday. I also share them often, including in my teaching!
I like the exercise, to take the descriptions and then work through what is going on on the different layers and balance sheets in each of the operations by oneself. In case i ever teach students again on that topic... I will ask you if i can use these scenarios 😁
Btw i just love your real world examples 🤣 don't know if i wanna call them satirical... But i just love them. Especially the hedgehog builder giving money to the church "for the homeless"(and not quite reaching them). Anyways...
What i found a little misleading was the first one, for two things:
1. Is the government actually directly initiating the issuance of central bank money, when it is spending?
2. You frame neutral issuance as rendering other money inactive. By that you mean the central bank money (reserves), right? That suggests for me that the bank can't use them anymore, which is not the case. Not that i would dive into reseve requirements in this piece, but these two things felt like suggesting something wrong, to me
Very useful and helpful. Thank you for laying it out descriptively and with your simple, yet clever illustrations. 😊
I'm super curious about the ways in which our living systems integrate with the monetary system. I have not read all your articles yet, so I'm not sure if or how extensively you've covered this angle.
I've written about it a little (for a beginner audience) and explored and read about it a lot.
I'd be intrigued to hear your thoughts on some of this. I know this is a rapidly evolving topic (money and currency in general).
Thanks for writing about it simply and coherently. It's important!
hey Brett and any of your Berliner readers, this isn't a direct comment exactly, but to let people know that the 3rd European Modern Monetary Theory Conference 2023 in Berlin starts 2mrw. ( Sep 9-11 ) I'm still learning about MMT-ers, but have heard from friends that some of these speakers are very good at explaining the money systems ( but not necessarily good in the politics of building the alternatives ), and would be very curious how you would analyze their conference with the theme: Navigating the Polycrisis: A conference on European Macroeconomics. We might try and write up a small XLterrestrials analysis ( https://xlterrestrials.substack.com/ ), but we won't be able to attend all of it... maybe see you there !
This piece really helps to fill out & cement my existing understanding of payments & the money layers. I appreciate your flair for explanation & use of metaphors—thanks for sharing your knowledge!
I have a semi-related question: How do bank interest profits manifest?—as additional reserves? or does the bank maintain internal "cash accounts" where it stashes its profits?
Fantastic work, keep it up Brett
More cracking work Brett. I love the visualisations they are very helpful.
BTW I loved Cloudmoney. You make this complex domain fascinating to unpick.
I have started paying with cash again as a personal statement. My local kebab shop (I have them on speed dial) are asking for cash payments to avoid the processing fees and I’m happy to oblige.
Currently reading Doughnut Economics which talks about complimentary currencies and references the work of Bernard Lietaer and the creation of Torekes. Are you familiar with this scheme? I’m interested in your views on how scalable currency schemes like this are.
Just one more comment to say thanks Brett. Each piece of yours I read reinforces the others and helps my understanding of the realities of money grow a little more embedded in my everyday. I also share them often, including in my teaching!
Great (unpaid) job!
I like the exercise, to take the descriptions and then work through what is going on on the different layers and balance sheets in each of the operations by oneself. In case i ever teach students again on that topic... I will ask you if i can use these scenarios 😁
Btw i just love your real world examples 🤣 don't know if i wanna call them satirical... But i just love them. Especially the hedgehog builder giving money to the church "for the homeless"(and not quite reaching them). Anyways...
What i found a little misleading was the first one, for two things:
1. Is the government actually directly initiating the issuance of central bank money, when it is spending?
2. You frame neutral issuance as rendering other money inactive. By that you mean the central bank money (reserves), right? That suggests for me that the bank can't use them anymore, which is not the case. Not that i would dive into reseve requirements in this piece, but these two things felt like suggesting something wrong, to me
Very useful and helpful. Thank you for laying it out descriptively and with your simple, yet clever illustrations. 😊
I'm super curious about the ways in which our living systems integrate with the monetary system. I have not read all your articles yet, so I'm not sure if or how extensively you've covered this angle.
I've written about it a little (for a beginner audience) and explored and read about it a lot.
I'd be intrigued to hear your thoughts on some of this. I know this is a rapidly evolving topic (money and currency in general).
Thanks for writing about it simply and coherently. It's important!