Terrific piece! I'm a (retired) mathy-quanty economist w/ a long interest on economic history & history of economics & i've never before run accross such a clear & convincing account of this dynamic.
Loving the "hegemony notes", hope they end up as a book!
But the lie, Adam, is that capital is only available with the blessing of rich people. The state can provide all the capital necessary to ensure full employment -- that it doesn't merely reveals that it is captured by rich people.
I agree with your position that monetary policy in modern American history has been ‘by capitalists, for capitalists’ in Kalecki’s formulation, i.e. managed solely for the greater good of bondholders who also have held and do hold financial assets which suffer badly in inflationary conditions. However the real reason why the American financial system and the larger economy have had serial, major, deflationary episodes has little to do with the agency of monetary policy and everything to do with background oscillating conditions which, yes, fluctuate but in fact have a much more defined mid run phase structure than that term implies. Indeed have a significantly regular phase pattern.
Not only do the deflationary episodes occur quasiperiodically, the comparatively extreme inflationary episodes preceding these ‘eras’ are similarly periodized. Those episode often occurred in the context of major wars to be sure . . . but THOSE are periodized too in their primary distribution. Inflationary and deflationary short run bursts can and do occur more frequently, in some respect to partially circumstantial ‘shocks.’ Major episodes of deflation and ‘growth’ accord to background exogenous pattern functions.
I’d be interested to discuss this with you in more detail with supporting evidence if you are so inclined.
Terrific piece! I'm a (retired) mathy-quanty economist w/ a long interest on economic history & history of economics & i've never before run accross such a clear & convincing account of this dynamic.
Loving the "hegemony notes", hope they end up as a book!
But the lie, Adam, is that capital is only available with the blessing of rich people. The state can provide all the capital necessary to ensure full employment -- that it doesn't merely reveals that it is captured by rich people.
Professor Tooze, thank you for this series of notes. I wonder if you propose to write a book at some point based on these notes?
I agree with your position that monetary policy in modern American history has been ‘by capitalists, for capitalists’ in Kalecki’s formulation, i.e. managed solely for the greater good of bondholders who also have held and do hold financial assets which suffer badly in inflationary conditions. However the real reason why the American financial system and the larger economy have had serial, major, deflationary episodes has little to do with the agency of monetary policy and everything to do with background oscillating conditions which, yes, fluctuate but in fact have a much more defined mid run phase structure than that term implies. Indeed have a significantly regular phase pattern.
Not only do the deflationary episodes occur quasiperiodically, the comparatively extreme inflationary episodes preceding these ‘eras’ are similarly periodized. Those episode often occurred in the context of major wars to be sure . . . but THOSE are periodized too in their primary distribution. Inflationary and deflationary short run bursts can and do occur more frequently, in some respect to partially circumstantial ‘shocks.’ Major episodes of deflation and ‘growth’ accord to background exogenous pattern functions.
I’d be interested to discuss this with you in more detail with supporting evidence if you are so inclined.