Daily Archives: Nov 27, 2020 at 08:02 am EST

Research Review | 27 November 2020 | Inflation

The Trade-off between Inflation and Unemployment in an MMT World
Emilio Carnevali (Northumbria U.) and Matteo Deleidi (Roma Tre U.)
October 2020
This paper is focused on Modern Monetary Theory’s (MMT) treatment of inflation from an open economy perspective. It analyzes how the inflation process is explained within the MMT framework and provides empirical evidence in support of this vision. However, it also makes use of a stock-flow consistent (open economy) model to underline some limits of the theory when it is applied in the context of a non-US (relatively) open economy with a flexible exchange rate regime. The model challenges the contention made by MMTers that measures such as the job guarantee program can achieve full employment without facing an inflation-unemployment trade-off.

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Macro Briefing: 27 November 2020

Supreme Court blocks restrictions on religious gathers to fight virus: CNN
Dr. Fauci worries that Covid-19 will soar during the holiday season: USAT
US Covid-19 hospitalizations rise above 90,000 for first time: WSJ
Trump says he’ll leave if Electoral College votes for Biden: CNN
Eurozone economic sentiment drops sharply in November: BBG
Will Black Friday offer lifeline to struggling stores? AP
Has Covid-19 ended the era of Hollywood blockbuster films? BBC
Bitcoin drops sharply after reaching record high: CNBC
Amazon ramps up its global workforce to over 1.2 million: NYT
Disney to lay off 32,000 as virus takes a toll on its theme parks: MW
US jobless claims rose for 2nd week; highest level in five weeks: CNBC