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May/June 2017 Newsletter

Working Paper: Mobile Finance in Developing Countries, by Rohan Grey

In a new Working Paper entitled "Mobile Finance in Developing Countries: Macroeconomic Implications and Potential," by Rohan Grey, Research Fellow at the Binzagr Institute, explores "the macroeconomic implications of the global proliferation of mobile finance technologies in developing nations from a modern money theory (MMT)-informed perspective." Rohan begins the analysis with an overview of the origins of, and recent developments in the mobile finance industry, and its relationship to traditional finance and banking operations. Next, he introduces the MMT paradigm, focusing on the implications of three core observations: 1) the tax-driven nature of modern money; 2) the hierarchy of money; and 3) the role of publicly-issued safe assets in minimizing systemic fragility. Then, the paper explores the implications of the MMT view on contemporary debates around the future of mobile finance, before concluding with a recommendation for the creation of a universal, digital fiat money-based payments system, combined with unlimited liquidity provision by the central bank to the banking system, as a third alternative to the current model banking system and the ‘narrow bank’ model of the 1930’s Chicago Plan.” >> Read full paper here.

Mobile Finance in Developing Countries: Macroeconomic Implications and Potential

Binzagr Vlog (Spanish translation)


We are delighted to share our fifth Vlog episode with Spanish subtitles (AUTÉNTICO PLENO EMPLEO). The Binzagr Institute’s Vlog series “Jobs, Money, Debt: Economic Common Sense” by Mathew Forstater, Research Director at the Binzagr Institute and Professor of Economics at UMKC, is designed to debunk myths about unemployment, deficits, the national debt, and the monetary system, and to articulate how we can create sustainable prosperity for the 21st century. Watch, comment, share, subscribe to our YouTube channel, and stay tuned for more videos in the coming weeks and months. Watch the 5th episode here.
First International MMT Conference
The Binzagr Institute is thrilled to co-sponsor the First International Modern Monetary Theory Conference in Kansas City, MO; featuring the following keynote speakers: Warren Mosler, Robert Skidelsky, Jamie Galbraith, Jan Kregel, and Randall Wray. Mark you calendars and join the Binzagr Institute's research team on September 21-24, 2017. This event welcomes academics, journalists, policymakers, activists, and engaged citizens from all walks of life.

Modern Monetary Theory has transformed the economics discipline. Its influence extends beyond economics, reaching deep into the fields of law, history, finance, banking, public policy, and philosophy. Join the world’s leading MMT practitioners, and explore the cutting edge of modern economic thinking.

Call for Papers: Submissions are welcome on any aspect of Modern Monetary Theory, such as: fiscal policy, economic development, employment policy, framing and marketing of MMT, taxation, inflation and reforming the financial system. Please send your individual abstract (200 words max) or panel submission with a short description before
July 17 to mmtconference@umkc.edu. We look forward to seeing you in Kansas City!

Additional details are available on the
conference website.
Accolades
The Binzagr Institute is proud to announce the successful Ph.D. dissertation defense and graduation of three members of our research team at UMKC: Aqdas Afzal, Abdulelah Alrasheedy, and John Nicolerson who now join our team of Research Scholars. You can read more about their dissertations below and read their profile here.

Aqdas Afzal"The Relationship between Economic Growth and Fossil Fuel Energy Consumption in Net Energy-importing Emerging Economies," by Dr. Aqdas Afzal. This dissertation shows that switching from water to fossil fuels during the Industrial Revolution was not purely based on economic considerations since water was neither scarce nor more expensive than coal.  Afzal's work empirically examines the relationship between economic growth and energy consumption growth in a sample of 35 net energy-importing emerging economies. Results show that economic growth Granger causes fossil fuel energy consumption growth in the period 1981-2013. For the same sample, results also indicate that the relationship between GDP per capita and fossil fuel energy consumption per capita is not curvilinear as postulated by the environmental Kuznets Curve (EKC) hypothesis.

Abdulelah Alrasheedy"Monetary Policies for Full Employment and Price Stability in Saudi Arabia: An Endogenous Money Approach," by Dr. Abdulelah Alrasheedy. The dissertation explains the high economic and social costs of unemployment and also calculates the empirical relationship between unemployment and loss in Gross Domestic Product (GDP) utilizing Okun’s law and applying recently-developed panel econometrics techniques; additional details about the social costs of unemployment are also explained. Knowledge of money’s effect on unemployment in Saudi Arabia is currently limited and thus the dissertation explores the ability and affordability of implementing a comprehensive solution to persistently high rates of unemployment. This is done through examining whether the country experiences endogenous money processes wherein loans create deposits and deposits create reserves. In addition to exploring potential methods of achieving full employment and the expected benefits of these policies, the study explains the unique features of the Saudi economy that make said methods particularly easy to facilitate. In essence, this study reveals the possibility for the country to achieve full employment using statistical evidence and the endogenous money supply hypothesis. The primary goal of the dissertation is to develop an approach to achieve full employment ultimately resulting in significant economic benefits for the society as a whole. It employs the endogenous money approach to offer policy solutions for unemployment in Saudi Arabia through transforming the economy into a Knowledge-based economy (KBE). KBE’s pillars are all present in Saudi Arabia save for innovation which could easily be improved because of the high numbers of educated individuals among the unemployed. Thus, this approach could benefit the nation with no foreseeable risks of harm threatened or seen from previous attempts at solutions from Saudi policy-makers.

John Nicolerson"Value, Money, and Accounting for Pax Ecologica: Contouring a Price-Coordination System for Ecological-Economic Provisioning," by Dr. John Nicolerson. The objective of this dissertation is to conceptualize and contour an alternative provisioning system (“Pax Ecologica,” “ecocentric provisioning”) to address, account for, and coordinate humankind’s scientific-technological relationship and impact upon the Earth system. The analysis advances heterodox economics in framing a fundamentally novel planning and value-money-accounting specification for qualitatively measuring the ecological-economic provisioning dispensation. This interdisciplinary examination evinces a wholly distinct theoretical and philosophical paradigm for transitioning from the ceremonial, profit-oriented capitalist price system, to a coordination framework where ecological and a priori humanist dimensions take precedence in repurposing certain insights from classical political economy for a more distilled, robust and resolute heterodox political ecology. The investigation begins from the hypothesis that capitalism – as a historically situated provisioning arrangement of unpaid ecological and social costs – cannot dependably navigate the transition to a consequence-oriented social dispensation where accounting for human life and scientific-technological efficiency are the core guiding analytical principles. In order to reconcile the existing deficiencies the present analysis compels, among other facets, the following original contributions: 1.) an application of the ceremonial-instrumental dichotomy as a valuation mechanism for assessing discrete money-credit forms, price systems, monetary production economies, and economic indicators – e.g., GDP; 2.) a composite, multidimensional approach to value theory via modification and synthesis of the labor theory of value tradition and the instrumental value theory of Institutional Economics; 3.) an appeal to Modern Money Theory (MMT) to clearly “pre-frame” and delineate the ontological and analytical foundations necessary for specifying a novel ecocentric money-credit form; and, 4.) a substantiation of each the ecological-economic theory of value, theory of money, and money-credit form into a rhetorical (demonstrative) accounting system with qualitatively distinct accounting categories and measurement indicators – e.g., net technological progress (“ecocentric accumulation”). In sum, the results sketch a transitory adjustment path from the current ceremonial capitalist money-credit form and price-competition system to an instrumental price-coordination system denominated in a supranational ecological-economic money-credit form, one that bears a functional or consequential relationship with the scientific-technological efficiency of humankind’s shared provisioning capacities. In articulating a distinctly non-capitalist – a priori humanist, scientific-technological – interdisciplinary approach to redress humankind’s use and impact on the Earth system, this dissertation further evidences the possibilities for heterodox economics to advance theoretical contributions for evaluating, specifying, and measuring novel labor and market forms; for exhibiting and establishing additional methodological possibilities and distinction; and, for further evidencing and validating the analytical potential for envisioning, conceptualizing, and generating theoretical and philosophical foundations for alternative provisioning arrangements and alternately conceived monetary production economies.

Updates from our Team

Bloomberg Radio
Robert C. Hockett, Research Scholar at the Binzagr Institute, was featured in several interviews with Bloomberg:
"Hockett and Schoenberg on U.S Treasuries Probe" (May 3, 2017), "Democratic Senators Urge Probe of Carl Icahn" (May 11,2017), "Deerfield Partners Charged with Insider Trading" (May 26, 2017), "One Nomura Trader Convicted, One Cleared at Bond Fraud Trial" (June 16, 22017), "Judy Offers Split Verdict in Nomura Trader Case" (June 17, 2017), "Bloomberg Law Brief: Barclays Ex-CEO Charged" (June 21, 2017), and "Corporate Whistle Blowers get Supreme Court Hearing" (June 28, 2017).

The Guardian
Pavlina Tcherneva, Research Scholar at the Binzagr Institute, was featured in an article entitled: "
What if we could stop exploiting people and cut unemployment at a stroke?"  (July 3, 2017).

Real Progressives
Rohan Grey and Steven Hail, Research Scholars at the Binzagr Institute, were interviewed by Steven Grumbine. You can watch the full interview with Rohan Grey
here (May 25, 2017) and Steven Hail here (June 20, 2017).

Yonkers Tribune
Owen M. Levin-Waldman, Research Scholar at the Binzagr Institute, wrote two op-ed articles entitled "
Does Technology Render the Traditional Concept of Property Obsolete?" (May 8, 2017), "The Politics of Distraction" (May 23, 2017) and "Can We Avoid a Revolution?" (June 19, 2017).

The Independent Australia
Steven Hail, Research Scholar at the Binzagr Institute, published "
Government debt versus household debt: 'Good' and 'bad' debt explained" (May 3, 2017).

Newsweek
Olafur Margeirsson, Research Scholar at the Binzagr Institute, was featured in an article entitled "
Iceland's Economy Is Booming - Thanks to a little help from Game of Thrones" (May 3, 2017).

Medium
Alexander Douglas, Research Scholar at the Binzagr Institute, wrote three recent blog posts: "
Taxation is Theft?" (May 6, 2017), "McDonnell on Marr" (May 21, 2017), and "Getting Money out of Politics" (June 1, 2017).

Conatus News
Alexander Douglas, Research Scholar at the Binzagr Institute, was featured in an interview entitled:
"Q&A on the Philosophy of Economics with Dr. Alexander Douglas – Session 2" (May 5, 2017).

El País
Rebeca Grynspan, Advisory Board member  at the Binzagr Institute, published two recent op-ed articles: "
Costa Rica: un caso de éxito" (May 5, 2017) and "Todos somos Iberoamérica: La cultura sirve de brújula para navegar la actualidad global" (July 5, 2017).

Review of Social Economy
Robert Scott, Research Scholar at the Binzagr Institute, co-authored an article entitled "
House arrest: the effects of underwater and low-equity mortgages on small business failure and mobility" (June 2017)

The Nation
Pavlina Tcherneva & Rohan Grey, Research Scholars at the Binzagr Institute, were featured in two articles: "
The Rock-Star Appeal of Modern Monetary Theory" (May 8, 2017) and "It’s Time for the Government to Give Everyone a Job" (May 19, 2017)

Financial Times
Robert Hockett, Research Scholar at the Binzagr Institute, were featured in an article entitled "
Treasuries Probe Shapes Up To Be Tested in White House" (May 15, 2017).

Philosophers' Magazine
Alexander X. Douglas, Research Scholar at the Binzagr Institute, published: "
What Voters Want" (May 5, 2017).

VSECU
Marco Vangelisti, Research Fellow at the Binzagr Institute, published a blog post entitled: "
From Traditional Finance to Impact Investment" (May 18, 2017).

Radical Political Economy
Scott Ferguson, Research Scholar at the Binzagr Institute, published a blog post entitled: "
Some Remarks on MMT & Marxism in Light of David Harvey’s “Marx, Capital, and the Madness of Economic Reason" (July 4, 2017).

Forbes
John T. Harvey, Research Scholar at the Binzagr Institute, published two articles entitled "
President Trump's Disastrous Budget Plan" (May 24, 2017) and "No Poor Need Apply: Four Reasons Why President Trump Is Wrong" (June 22, 2017).

The Conversation
Robert Scott, Research Scholar at the Binzagr Institute, co-authored an op-ed article entitled "
Poor and middle-income families need a better way than 529s to save for college" (May 27, 2017)

Forbes
Robert Hockett, Research Scholar at the Binzagr Institute, published two op-ed articles:
"Let's Get Real About "Financial CHOICE"" (June 11, 2017), "Warren, Yellen and Bank's Regulation Forgotten Toolkits" (June 21, 2017), and "What are RyanCare, McConnellCare and TrumnpCare for?" (June 28, 2017)..

Tropics of Meta
Raúl Carrillo, Research Fellow at the Binzagr Institute, published blog post entitled "
What Modern Monetary Theory can Teach us about Criminal Justice" (July 7, 2017).

Lexit Network
Jorge Amar, Research Scholar at the Binzagr Institute, published: "
25 years of Monetary Union: Nothing to Celebrate ... But its Demise" (May 28, 2017).

Renegade Inc.
Steven Hail, Research Scholar at the Binzagr Institute, authored two articles entitled: "
Australia's Forthcoming Crisis" (June 8, 2017) and "How Economists and Politicians gave up on Employment in Favour of Alchemy" (June 27, 2017). He was also interviewed for the article entitled "The Cost of Getting it Wrong" (June 8, 2017).

U.S. Senate Banking Committee on Banking, Housing & Urban Affairs
Robert Hockett, Research Scholar at the Binzagr Institute, co-authored a paper for a U.S. Senate Hearing:
"White Paper in support of a National Investment Authority" (June 2017).

Bay FM 99.9 Community Radio
Steven Hail, Research Scholar at the Binzagr Institute, was interviewed on
"Over The Rainbow" (June 9, 2017). You can listen to the recorded radio program here


Challenge
Robert Hockett, Research Scholar at the Binzagr Institute, co-authored an article entitled
 "Private Debt and Public Debility" (June 2017).

E-Currency
Rohan Grey, Research Fellow at the Binzagr Institute, co-authored an article entitled
 "The Case For Digital Legal Tender: The Macroeconomics Policy Implications of Digital Fiat Currency" (June 2017).

Forbes.com
Sara Hsu, Research Scholar at the Binzagr Institute, published several new op-ed articles on the state of the Chinese economy:
"RMB Internationalization: Are We There Yet?" (May 10, 2017), "Trump's Trade Deal 'Win' With China: Fake News?" (May 14, 2017), "Trump's Support for China's One Belt, One Road Initiative is Bad for U.S., Good for World" (May 18, 2017), "China Seeks a Balance Between Financial Reform And Stability, But is it Possible?" (May 26, 2017), "China's Currency Surges, But There's a Snag" (June 1, 2017), "Inclusive Finance: China Opens up Credit  to more People - But Risks must be Controlled" (June 1, 2017), "China Goes in Circles: Another Attempt to Reform State-Owned Enterprises doesn't do Enough" (June 13, 2017), "As America's Trapped in Ideological Civil War, China Advances Economy" (June 16, 2017), "China's MSCI Inclusion a Huge Vote Of Confidence by Global Investors" (June 21, 2017), and "China is Investing Heavily in Artificial Intelligence, and could soon Catch up to the U.S." (July 3, 2017).  You can follow Sara's columns on Forbes.com here.

Call for Proposals: Binzagr Palgrave-Macmillan Book Series

We are delighted to announce a partnership between the Binzagr Institute and Palgrave Macmillan to publish a new book series on Sustainable Prosperity. This series is co-edited by Mathew Forstater, Fadhel Kaboub, and Michael J. Murray. Please contact the co-editor to submit your book proposals.

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